monetary policy transmission mechanism. throughout 2017, we have worked on three main aspects : first, promoting the use of the national currency. the high euroization renders the monetary policy pass - through more difficult, as it exposes the private agents and the financial system to exchange rate volatility. aware of this fact, the bank of albania, the ministry of finance and economy and the albanian financial supervision authority signed a memorandum of cooperation “ on increasing the use of the national currency ( all ) in the albanian financial system and economy ”. in this memorandum, the signatory institutions commit to identifying and undertaking actions within their area of competence. in this framework, the bank of albania identified a package of measures, following the consultations with the banking industry, and which shall enter into force over the second half of 2018. second, enhancing the appetite of banks to expand lending. banks ’ appetite for lending continues to remain relatively low, by reflecting the effect of two factors : ( i ) deleveraging policies for reducing exposure in the countries of the region, including albania, implemented by parent banks from the euro area ; and, ( ii ) perception of credit risk at home. the bank of albania, to address this issue, has continued the collaboration with the european banking authority supervisory college, to exchange information and harmonise the supervisory policies. also, our institution continues to implement the measures set out in the national plan for reducing the non - performing loans and improving the lending environment. third, fostering the development of financial markets and expanding the range of financial instruments. in 2017, the bank of albania, the ministry of finance and economy and the world bank explored options for developing the secondary market of government securities and improving the functioning of the primary market. this project will help to : increase the government securities trading ; enhance the investors ’ base, and better manage the liquidity. 3 / 6 bis central bankers'speeches regarding the financial stability, the bank of albania has continued to implement a prudential and pro - active regulatory and supervisory policy. in 2017, fourteen full - scope and partial examinations were performed in banks, non - bank financial institutions, and savings and loan associations. the examinations showed that the performance of the banking sector improved in terms of : the quality of internal policies and their implementation ; the establishment of adequate risk management processes ; and, the implementation of the supervisory regulatory framework. moreover, the non - bank financial institutions are assessed to have still space to ensure proper effectiveness, independence and authority. the

gent sejko : albania's economic and financial developments in 2020 address by mr gent sejko, governor of the bank of albania, presenting the annual report 2020 to the parliamentary committee on economy and finance, tirana, 20 april 2021. * * * honourable chair, honourable members of the committee, thank you for the invitation and the opportunity to present to the committee, the annual report 2020 of the bank of albania! the report presents the contribution of the bank of albania to preserving the monetary and financial stability of albania – such a valuable achievement in the view of unprecedented challenges we have been facing throughout the previous year – and the measures we have taken in fulfilling our legal and institutional duties and commitments. the covid - 19 pandemic and the necessary measures taken to control it strongly hit the albanian economy. it caused a negative impact on : the volume of economic activity ; employment ; the financial situation of households and enterprises ; and on the domestic and foreign equilibriums of albania. in coordination with fiscal stimulus, the bank of albania implemented a complete package of macro - prudential, operational and monetary measures, which were aimed at preserving liquidity in financial markets, reducing borrowing costs, continuation of lending and maintaining uninterrupted flow of financial services. through these measures, the bank of albania enabled : the reduction of crisis financial cost to households and enterprises ; the avoidance of its transmission into the financial sector ; and the preservation of a calm monetary and financial environment, by establishing the premises for a faster recovery with the normalisation of the situation. hence, the impact of crisis on the economy was lower than expected, by showing both the positive effect of measures taken by public authorities and the flexibility and resilience of our economy and financial system. our forecasts show the albanian economy will turn towards recovery during 2021 with the gradual reduction of the negative impact of pandemic. the volume of economic activity is expected to shift on an upward trajectory in the medium and long term, underpinned by the favourable financing conditions, the reduction of uncertainties and the progressive recovery of both domestic and foreign demands. nevertheless, the guaranteeing of stable economic growth and the management of many - downside risks would call for ongoing attention and prudence. dear ladies and gentlemen, following, i will detail the directions and main results of our work over 2020. * * * 1. economic performance, price stability and the reaction of the bank of albania 2020 was a hard and challenging year, marked by the