costs beyond their individual dimension. through this new capital composition, the macro - prudential instruments manage the systemic risk before it materializes, decreasing the probability of occurrence and, after its materialization, minimizing losses that are absorbed by the higher level 2 / 5 bis central bankers'speeches of capital. but still a lot of work remains to be done. it has long been recognized that a deeper financial integration also brings a better functioning of the european union. yet, financial integration showed to be shallow and reversible and, after the financial crisis, fragmentation increased against centralization and integration. the measures undertaken to reduce liquidity within each country improved the national financial stability, but neglected the effect on other countries. the banking union addressed these inadequacies by concentrating the national financial policies at the central level and aiming to fulfil two objectives : to ensure banks ’ soundness and promote a deeper integration of the banking sector. the single supervisory mechanism plays an important role in these objectives. a stronger and more uniform supervision enhances banks ’ stability and provides them with a more coherent framework of policies on cross - border banking, producing benefits compared with the fragmented system of national supervision. as mario draghi says : “ let ’ s keep in mind that fragmentation starts with the decision by banks not to operate in regions where the risk - return of lending is judged to be insufficient to remunerate their invested capital ”. supervisors ’ advice for banks in the post - crisis period remain the same : banks should adapt the business model to be more effective and profitable, improve risk management and manage the cleaning of the balance sheet from legacy assets. despite the progress made, these tasks are yet to be completed and now is the most appropriate time to finalize them. the regulatory framework is clearer and more complete ( the implementation of basel iii is starting ), supervision is clearer in terms of methodologies and policies, and the application of fintech allows banks for new ways to do business efficiently. lastly, and more importantly, the overall macroeconomic framework is stabilised and the positive economic growth is stable. the framework presented above is a good guideline to address the remaining post - crisis challenges. is the adoption of international standards on financial stability safeguarding necessary? the answer is yes, because the globalization and interconnection of the banking sector needs the standardization of prudential regulation. however, while adopting international standards, it is important to keep in mind two issues : first, these standards have to adapt

gent sejko : effectively using remittances sent by albanians abroad address by mr gent sejko, governor of the bank of albania, at the high - level meeting on the remittances from the albanian diaspora, tirana, 11 december 2017. * * * dear minister majko, dear guests, welcome to the premises of the bank of albania! i would like first to thank the minister of state for the diaspora, mr pandeli majko, for his initiative for higher attention to drawing in and effectively using the remittances sent by albanians abroad. today ’ s meeting is the first in a series of common steps to be taken by albanian institutions, in an effort to give its due place to the financial contribution by albanian emigrants to the welfare of their families at home. this contribution is also vital for the sustainable and long - term development of the albanian economy. the bank of albania has always considered the remittances as a very important contributing factor for the economy of albania and beyond. in this light, the bank of albania measures and analyses the available statistics, and conducts non - quantitative assessments related to the geographical distribution of the sources of remittances, at the national and international level. the assessment of factors contributing to the level of remittances and the cyclical volatility of their flows over the years remains at the focus of our work. for albania, remittances represent a steady and considerable source of inflows, which surpass foreign direct investments, being thus a substantial source of financing economic growth in albania. in this regard, the bank of albania considers remittances as an important source of income in the economy and a contributor to the balance of payments. from a narrower perspective, remittances are estimated to have a significant impact on albanian households, for reducing the poverty and improving the quality of life. even in the case of albania, the studies performed by the bank of albania and the world bank show that the income from remittances are allocated mainly for consumption, medication, and education, as well as for savings and investments, the latter mainly for residential properties. in addition to the above, the bank of albania treats remittances also from the perspective of their inflow channels in the albanian economy. recent studies show that the formal transfer channels dominate, mainly through money transfer financial institutions, and less through banks. in the meantime, remittances in cash remain at