gent sejko : the role of central banks and the banking sector on the path to eu welcome address by mr gent sejko, governor of the bank of albania, at the annual conference of the bank of albania, co - organised with the albanian association of banks, tirana, 13 november 2024. * * * honourable minister of finance honourable madam minister of state and chief negotiator, honourable chair of parliamentary committee on economy and finance, dear president of the albanian association of banks shella, dear fellow governors and guests it is a great honour and pleasure to welcome you all to the annual conference of the bank of albania. please allow me, in this occasion to congratulate the albanian association of banks for its 25th anniversary. the albanian association of banks, the co - organiser of this conference, has proven to be a serious collaborating and coordinating platform for the banking industry, in addition to being a visionary institution and our important partner on our journey towards development and modernisation. this conference, the 17th one, is a crucial moment in our annual business schedule as it always offers a solid ground for communicating with our institutional partners, field experts and the public at large. it enables us to look away from the challenges of the present, to consider issues of strategic importance for the sustainable and long - term development of albania, as well as to try - through open and constructive dialogue, to identify the policies and adequate instruments for addressing them. in this view, i would like to highlight that despite the rapid economic and political developments of the year we are leaving behind, the long - term headline from 2024 will be our receiving of a green light and the start - in october - of the official process of negotiations for membership in the union european. this new chapter poses a busy agenda ahead of regulatory, legislative and institutional reforms. their realisation is both a prerequisite for our membership, as well as a major and indispensable step on our way of progress. for this reason, we have decided to dedicate the proceedings of this conference to the role of central banks and the banking sector in the integration process. dear guests, before addressing my views on our conference's topic, i would like to focus briefly on the current status of the albanian economy and its financial system. 1 / 4 bis - central bankers'speeches albania of 2024 offers a completely different economic reality compared to a decade ago, when the country received the status of potential candidate for membership. despite

euro area. we have persistently invited policymakers and economic agents in the country to partake in this vision. as the country ’ s monetary authority mandated to guarantee price stability, we have worked and will continue to do so to ensure a low - inflation environment. this environment boosts the guarantees for savers and investors for their long - term plans and provides for financial system development. the bank of albania implements a modern monetary policy based on the most advanced principles of central banking, and employs instruments and communication approach in line with ecb practices. the commitment of the bank of albania to maintain price stability is the polar star of our work. drafting and implementing the monetary policy independently, exclusively in the function of price stability, is one of the domestic anchors of the albanian economy, which should be preserved and strengthened. in parallel, the bank of albania deems that the albanian economy needs two additional anchors : financial stability and fiscal stability. our regulatory and supervisory function over the banking system, which accounts for 95 % of the financial system in albania, has proven successful in guaranteeing the country ’ s financial stability. this function has been carried out and is discharged in line with the international best practices, in constant cooperation with homologous institutions and other international partners. the possibility to have an integrated vision of economic and financial developments, and to combine but not mix the monetary policy with macroprudential measures, has enhanced the effectiveness of bank of albania ’ s actions, and has contributed to better achieving the two individual objectives : financial stability and price stability. the institutional regulation, which has proven effective and is in line with the latest global trends, should continue to function as a second anchor of domestic economic anchors. finally, the bank of albania deems that albania should immediately establish not only a clear and transparent fiscal rule, but also an effective one to discipline the fiscal policy and maintain the trust of financial markets in public finance soundness. this third anchor would complete the framework of domestic anchors of economic policy. together with the close cooperation with international financial institutions, it would provide a consistent and transparent framework for the country ’ s development. provision of liquidity and solvency of the albanian economy through bilateral and multilateral partnerships is a priority for central bank policies. this vision and partnership should become the axis of cooperation between national institutions. bis central bankers ’ speeches