it first hit and, little by little, it transformed from a mortgage crisis into the deepest global crisis since the great depression. the response to the crisis and the lessons drawn from it followed in a similar fashion. the approach and extent of response to the crisis was not uniform across the countries. the economies having fresh memories of the financial crises responded swiftly and more strongly. the same can be said for the public and business community in these economies. the economies enjoying a favourable fiscal position also faced the crisis without impairing their long - term fiscal sustainability. the situation seemed slightly more complex in some developed european economies. seeking to find a balance between deleveraging and fiscal consolidation, euro area authorities demanded setting up a protective wall against the possible fire bursting into from the outside. but, as noted, this fire had already burst out and was spreading inside the euro area walls ; therefore, setting up this “ protective wall against fire ” was pointless at this point. the european union and its institutional structures, along bis central bankers ’ speeches with the international financial institutions and partners, are undertaking a number of reforms to put this “ fire ” out. however, it is still unclear how long this “ agony ” will last and likewise is its impact on the euro area and its trading partners. the exhaustion of fiscal and monetary policy incentives failed to increase economic activity and, moreover, it further aggravated the sovereign debt situation and financial stability. consequently, the sovereign debt sustainability and banking system credibility - related issues were added to the concerns about economic growth. the question facing many countries today has the form of a trade - off between stability and sovereignty. currently, the latter two are intertwined in an endogenous relationship ( of mutual impact on one another ), in which the multi - dimensional need for stability ( implying the maintenance of price stability, macroeconomic stability, financial and fiscal stability ) requires taking balancing measures. the latter have considerable social costs in the short run. social discontent against them and the governments proposing them erodes the credibility of reforms and the authorities, increasing, in turn, the sovereign debt risk. euro area, and particularly its southern members, are facing a concern, whose solution bears consequences with economic and political implications for the future of all member states and the common currency. the reforms and policies undertaken by euro area authorities, individually or in a concerted manner, have important and direct implications for our economies. experience to date has shown that our partners and their large banks have adopted an approach that maximizes their

##ing these two vital pillars to the stability and prosperity of the economy, we have provided the best contribution to achieving higher economic growth. on the other hand, this would create an attractive surrounding for absorbing and accommodating foreign investment, and allowing the entry of new capital into the economy, which is vital to support the country ’ s economic activity and its credibility in the region and beyond. the bank of albania is committed to guaranteeing a sound banking system and efficient in channelling public savings into the economy. we will continue to carry out our periodic examinations to guarantee the banking system ’ s stability. sufficient capitalisation and capital quality remain our primary objective. i would like to guarantee the system that the bank of albania will take all the measures to supply with liquidity, while increasing the pressure for higher credit volume and improved quality. dear guests, i invite you to actively participate in today ’ s debate and discussions on issues that have been and will remain the focus and our common interest in the future. i invite you all to contribute, bis central bankers ’ speeches through presentations and discussions, to setting objectives our region will face in the future and solving the current challenges. thank you for your attention! bis central bankers ’ speeches