benefit from credit growth, for as long as and provided that such growth is based on firm structural and institutional premises. it is our common duty not to let this opportunity pass. this conclusion leads me naturally to the precondition i mentioned earlier. the albanian economy offers positive business prospects, coupled with a high crediting potential and reduced credit risk. this reality dictates the need and the possibility for a bolder approach toward crediting. i have had the opportunity to elaborate – on a continuous basis – our standpoint on the economic development perspective. i would like, however, to bring today to your attention again that, in cooperation with the albanian association of banks and the government of albania, we are implementing an ambitious plan of measures for reducing non - performing loans. from a strategic point of view, the objective of this plan was not only to simply clean banks ’ balance sheets, but also to provide for a qualitative improvement of the crediting environment in albania. in this context, the banking industry now has a more adequate legal and regulatory framework on protecting the interests of the creditor, repossessing collateral and executing it, and a more transparent environment for assessing the risk of individual borrowers. on this basis, the bank of albania deems that the banking sector, should : pay additional attention to crediting as a commitment that generates mutual benefits both for it and the albanian economy ; empower internal structures and its analytical and managerial capacities in terms of crediting ; ensure prioritized implementation of outstanding commitments under the plan of measures for reducing non - performing loans ; and, be more vocal and more transparent in identifying obstacles or deficiencies it finds in the crediting environment, both in legal and in regulatory aspects. these recommendations should not be addressed separately from the second challenge. 2. efficient allocation of bank loans as a precondition for sustainable and long - term development increased attention to crediting does not imply merely increased attention to the volume of credit, but also additional attention to its quality. these two aspects are complementary and do not contradict each other in the long run. the history of credit in transition economies, including albania, features some problematic elements which we need to avoid in the future. first, credit has been notably concentrated in non - tradable goods and services, such as residential buildings and services, which are oriented solely – or primarily – toward the domestic market. clearly, this trend reflects, at the same time, the lack of managerial knowledge and capacities in

to play a significant role in ensuring financial inclusion and promoting financial literacy, i want to emphasize that the banks alone would not be able to achieve this ambitious goal and that other stakeholder groups also need to contribute their mite towards this cause. for banks, the focus has to be on building a sustainable, scalable and cost - efficient business delivery model by leveraging upon technology. 22. i would like to conclude by saying that financial inclusion and inclusive growth are no longer just policy choices, but are policy imperatives, which would determine the long - term financial stability and sustainability of the economic and social order, going forward. we need to ensure that all of us are collectively willing to walk that extra mile to ensure that our fellow countrymen get easy access to the financial system and are able to leverage this access to improve their economic and social well - being. please remember that the rich would not be able to sleep peacefully if the economic and social divide is allowed to grow any bigger. as i mentioned at the beginning, in view of their reach and coverage, electronic and print media has an important role in not only supporting our financial inclusion mission but in leading the initiative by spreading our message far and wide. today ’ s event is a glowing testimony to the support being extended by the media to the cause of financial inclusion and i firmly believe that this support would act as a catalyst and further invigorate the efforts being made by the governmental and non - governmental agencies. 23. i once again thank cnbc tv 18 for inviting me to share my thoughts today and do hope that the conclave succeeds in throwing up several new practical ideas and strategies which can be implemented by banks and other financial sector participants to further the objective of financial inclusion in the days to come. thank you! bis central bankers ’ speeches