supervising a bank in spain or slovenia will let career considerations influence his or her decisions. that said, local knowledge about the banking market and economic conditions are important. systemic banking crises can be exceptionally costly and are likely to remain national phenomena, in much the same way as they are largely regional in the us. one reason for this is that fiscal policies and many economic policies that can play an important role in setting the stage for a bubble will remain largely national. retaining some capacity to implement national macro prudential policy will therefore be important. overall, it seems essential to combine both union - wide and national factors in designing a ssm. another reason why a ssm is desirable in a monetary union has to do with the credibility of the supervisory framework. when banks in a country run into trouble or a bubble is forming, outside observers tend to attribute part of the problem to weaknesses in the national regulatory and supervisory regime. they naturally ask if other undetected problems may be brewing in the financial system in question. this may lead to deposit withdrawals or to a national risk premium to develop even if the sovereign has sufficient capacity to backstop the financial system. to my mind, a ssm, provided it is well - equipped and resourced, is less likely to have its credibility eroded in such a situation. bis central bankers ’ speeches furthermore, combined with a single supervisory rulebook, a common supervisory culture can create a level playing field and increase transparency and confidence in the system. a ssm can also eliminate barriers to the flow of information between supervisors of crossborder institutions. the development of a common resolution framework and a resolution fund will also facilitate an efficient management of cross - border banking difficulties. indeed, while the debate around banking union is dominated by the capacity of the esm to break the link between sovereigns and banks, a resolution framework alongside a common deposit guarantee scheme can help ensure that this link does not develop in future crises. the benefits of a resolution framework and fund in ensuring that taxpayers are insulated from the direct costs of resolving banks are clear. however, a common deposit guarantee scheme can be equally important ; fears about the ability of individual sovereigns to backstop national deposit guarantee schemes have led to large intra - euro area retail deposit flows during the current crisis, significantly impacting on funding costs of banks in stressed sovereigns. monetary policy let me next turn to monetary policy. it is sometimes felt that monetary policy and banking supervision should not be conducted by the same institution to limit

gent sejko : statement - press conference with imf mission chief statement by mr gent sejko, governor of the bank of albania, at the joint press conference with the international monetary fund ( imf ) mission chief for albania minister of finance and economy, tirana, 10 october 2022. * * * dear media representatives, in the last two weeks, the bank of albania and the albanian government have been engaged in intensive discussions with the imf mission, which visited albania in the framework of the regular article iv consultations. discussion focused on current challenges for the albanian economy, as well as structural reforms that would enable a faster and more sustainable development of the country in the long term. allow me - first and foremost - to extend my thanks to the imf mission for the open share of views in addition to the fruitful and transparent discussions. overall, the bank of albania and the imf share similar opinions on the developmental challenges that lie ahead. the swift upsurge of prices in the global markets following the unprovoked military aggression of russia over ukraine, have triggered serious economic and social challenges for the economies and citizens of all countries around the world, including albania. inflation hit 8 % in august, increasing at a rapid pace and having a broad base. based on our judgement, we have previously stressed out that the high inflation is the main threat on the macroeconomic stability and both the stable and long - term growth of albania. this inflation corrodes the households'purchasing power, increases the uncertainty for the future in every cell of the economy, heightens the volatility of financial markets, and damages the long - term perspective of development. therefore, the primary focus of economic policies should be the undertaking of coordinated measures to mitigate the cost borne by inflation, and control and return it to its target, in the shortest time period and with the lowest cost possible. against this backdrop, the bank of albania has embarked on the gradual normalisation of the monetary policy. this normalisation is undertaken in parallel with all the other central banks, across the region and around the world, which are facing the same high inflation phenomenon. it engenders a progressive raise of the key interest rate, by slowly changing the nature of the monetary policy stance from the current position, which has been stimulating, towards a more neutral position, which provides a more sustainable support for the long - term growth of albania. during the discussions of the past two weeks, we have gladly observed