temporary, in the bank of albania we do believe that the banking union / single supervisory mechanism and the new role provided to ecb, will also serve to improve the supervision of the banking sector in our country. this will come not only by much more consistent approach in supervision practices, but also through improving the coordination framework between home and host supervisors. in this regard, in the bank of albania, we are willing and hopeful that we can establish a much stronger working relationship with the ecb. thank you very much for your attention! bis central bankers ’ speeches glossary cesee – countries of eastern and south - east europe ; ssm – single supervisory mechanism ( eu ) esrb – european systemic risk board ( eu ) fsoc – financial supervision oversight council ( usa ) ecb – european central bank eba – european banking authority fsb – financial stability board pra – prudential regulatory authority ( uk ) fpc – financial policy committee ; brrd – banking recovery and resolution directive ( eu ) bis central bankers ’ speeches

gent sejko : supervisory policies after the start of the banking union – initial experiences and outlook for cesee economies intervention by mr gent sejko, governor of the bank of albania, in 6th ecb conference on cesee : “ cesee, old and new policy challenges ”, session ’ s topic “ supervisory policies after the start of the banking union – initial experiences and outlook for cesee economies ”, frankfurt am main, 10 june 2015. * * * dear participants : i am honored and pleased to be in this important conference among distinguished professionals of banking and financial industry! i want to start by thanking the organizers for the invitation to be here, but also to congratulate the ecb on its new building : i wish it is as functional, as it is beautiful! coming from the banking industry, i have been feeling the impact on the banking activity arising from the changing economic and financial environment due to recent global financial crisis. since my appointment as the new governor of the bank of albania at the beginning of this year, i have been seriously estimating the challenges we face in order to maintain the stability of our banking sector and ensure that it is fit to play its role in support of albania ’ s economic growth. in my intervention today, i would like to share with you how we see the impact of changes in the financial landscape, including those in supervision superstructure, on the financial system of cesee countries and more specifically on albania ’ s one. with that being said, please let me start with supervision superstructure and the relevant changes in the post - crisis financial landscape, on the first place. since the beginning of the global financial crisis, there have been significant changes in the financial landscape. these changes have been driven by a combination of : 1 ) pre - crisis excesses ; 2 ) restructuring measures ; 3 ) international financial regulatory reforms ; pre - crisis excesses were due to : • increasing financial integration and innovation ; • misalignments between incentives for risk - taking and risk - provision ; • weaknesses in monitoring and supervision ( especially lack of monitoring and assessment of systemic risk development, as well as cross - border interaction issues ) ; such pre - crisis excesses led to risks coming from : • higher ( and often, hidden ) concentration of exposures and interconnection, especially on a cross - border level ; • over - indebtedness ( both in private and public sectors ) ; • unrealistic increase in both, financial and real asset