economic and financial stability should be further enhanced, in order to increase our resilience to shocks and to decrease our financing costs. third, it is becoming increasingly clear that our financial systems have become over - reliant on banks. looking ahead, we should rely more on capital markets in order to finance 1 / 3 bis central bankers'speeches domestic growth. fourth, a common complaint frequently heard from potential foreign investors is the limited attractiveness of small and fragmented markets. while partly incorrect, we should do more to increase our trade and infrastructure integration. fifth, in competing for the same pool of international investors, countries in the region often attempt to raise their individual profile through offering tax break or other subsidies. this race to the bottom does not prove to be productive. resolving any of these issues requires foresight, strong institutions, determined policy action, and regional coordination. institutions and integration our region is actively involved in the eu integration process. this objective is the lighthouse for our institutional reform efforts and has produced notable benefits. the eu integration is aiding authorities in the region to anchor their institutional reforms and policies. on the other hand, the eu institutions provide oversight and lend credibility to the process. additionally, since individual countries are working towards common objectives, regional policy is better coordinated. however, i also believe countries in the region could do more to share their experiences and learn from each other. albania offers a positive example in terms of economic and financial stability. macedonia has done exceptionally well in terms of attracting high - value - added fdis. serbia is on the regional vanguard of financial market development. all of us should learn from our individual success stories ; all of us should avoid mistakes we have individually made in the past. our countries share more commonalities than differences : what works for one is more likely than not to work for others, and vice versa. furthermore, i believe we should look at regional integration as a goal in itself, rather than as an instrument to eu integration. joint eu integration would supersede certain regional integration frameworks, such as trade and factor mobility, but it would not supplant the need for further policy dialogue and common regional perspectives and solutions. let me now to briefly describe the role of institutions in structural reforms in albania. institutions and structural reforms in albania it is virtually impossible to do justice to the breadth and depth of reforms in albania over the limited allotted time. therefore, i will try to highlight only its main items. in order to improve our business environment,

i believe there is scope for greater regional dialogue and greater policy convergence, at all relevant areas of public policy and private sector development. second, i believe there is more to be done in order to finish the job of regional integration. in particular, standards on products and services should be agreed upon. third, beyond the convergence of financial development policies, i remain convinced we should explore the idea of joint financial development projects. although fraught with difficulties, a regional stock exchange is a meaningful potential project. fourth, i believe the region should strive towards establishing the lowest acceptable common denominator in terms of tax, labour market, financial sector, and environment regulation. ‘ beggar - thy - neighbour ’ policies through constantly undercutting each other in any of these areas are only damaging the region in the long term. fifth, the regional infrastructure remains rather fragmented. this refers not merely to the transport infrastructure, but also the electricity and it network. honourable participants, some of the issues i professed here might seem utopian or unrealistic. however, i remain convinced that through an honest common endeavour, such ideas might, someday, in the nottoo - distant future, become reality. thank you! 3 / 3 bis central bankers'speeches