to interest rate risk, the spread between assets and liabilities repricsed up to three months, accounted for 5. 1 % of earning assets, which shows a low exposure to interest rate fluctuations at system level. moreover, during 2011, the banking system performed positively in terms of compliance with new standards and regulations on operational risk management approved over the year. issues related to transparency and money laundering prevention were an important part of supervision in 2011. to monitor them, a number of examinations on banks and non - bank financial institutions, including bureaux de change, have been conducted. they have revealed that the entities have generally taken preventive measures. transparency and publication of information were subject to reforms in 2011 and aimed at establishing a more appropriate business climate for banks and providing higher protection to the public. banks, on their side, have responded positively by adapting their internal regulatory framework in line with these changes. further improvement is needed to enhance the transparency with regard to credit agreements, which have been a source of customer complaint and on focus of examinations on transparency and corrective measures taken by the bank of albania. the practices for deposit and account estimation, as well as disclosure and addressing of customer complaints are generally regarded as less problematic. supervision of non - bank financial institutions is also a functional part of the bank of albania. their number amounted to 19, from 17 a year earlier ; their specific share remained unchanged, accounting for 3. 1 % of banking system assets. during 2011, their activity posted moderate growth with regard to total assets, loan portfolio and financial profit. overall, non - bank financial institutions have adhered to regulatory framework and supervision standards. however, on - site examinations have identified several problems, thereby making appropriate recommendations related to them. among them, we would highlight the need to : improve lending process ; revise internal regulatory framework ; enhance transparency to clients, etc. the expansion dynamics of the financial sector activity is reflected in the licensing process. during 2011, additional activities requested by banks and non - bank financial institutions were approved, consisting in introducing new market products and diversifying the existing products of financial institutions. moreover, a preliminary approval was granted to new bank branches and agencies ( 10 ), but at low paces, whereas the activity of some bank branches and agencies was closed ( 11 ). as at year - end, there were 528 bank branches and agencies operating in the country and 1 branch operating abroad. regarding supervision of the financial activity under the jurisdiction of the bank of albania, allow me to

have triggered european banks to revise the model and expansion of their activity. in more practical terms, it implies that the presence of foreign bank subsidiaries in the countries of our region is subject to a careful assessment, to determine their effectiveness and business continuation. this process is not necessarily restrictive for the economies of our region, as it may generate processes related to banking consolidation or lead to new investors entering the market. the bank of albania is closely monitoring economic and financial developments in the countries where parent bank groups operate. we have undertaken over time measures that ensure the strengthening of capital and liquidity indicators and improve the resilience of both individual banks and the whole sector. at a more operational level, periodic analyses and other processes are under way, with a view to realising : i. a professional assessment of the financial situation and operational risks for individual banks and the whole sector ii. a comprehensive framework for addressing and mitigating risks facing the financial system stability. 4. main objectives for 2015 this was an overview of bank of albania ’ s activity in 2014 and of the first months under my governance. in conclusion, i would like to focus briefly on our main objectives for 2015 that stem from both legal obligations and the medium - term development of the bank of albania. first, monetary policy decisions will aim at anchoring inflation expectations close to the 3. 0 % inflation target. our projections suggest that the monetary policy will remain accommodative side in the period ahead. in our judgement, the current monetary conditions are adequate for the return of the economy to equilibrium and of inflation to target. however, within the legal framework that regulates the work of our institution, we are ready to undertake all the necessary measures for compliance with our inflation target. second, supervisory policies aimed at strengthening the banking system stability. main challenges facing the albanian banking sector are as follows : i. ensuring the return of a steady growth of lending ; ii. improving indicators of bank asset quality, in the framework of measures taken for cleaning their balance sheets, which are expected to have a positive effect on the operational efficiency and intermediation capacity of banks ; bis central bankers ’ speeches iii. mitigating effects arising from structural regulations imposed to eu - based banking groups in the context of reducing their exposure to subsidiaries outside the eu ; to safeguard the financial stability, the aim will be to further strengthen the inter - institutional cooperation with other financial supervisory institutions and international financial institutions. third, strengthening the system of management and internal audit, and institutional capacities