PRESS RELEASE
Q&A with Governor Fullani at the press conference on BoA Supervisory Council decisions on Monetary Policy, 23 February 2011

Question: You mentioned in your statement that the Albanian citizens are facing with increased food and fuel prices and that the poorest categories of the Albanian society are most affected. How worrying do you think this is for the future, that is to say, do you foresee that this rising trend of prices will continue and what needs to be done under these circumstances?

Governor: I think that the today's statement clearly expressed that the Bank of Albania, in all its projections for the future, has factorised the impact of increased commodity prices, including forecast reports of IMF and FAO. The Bank of Albania will continue to pay particular attention to the effect, if there is a second-round effect, of these prices.

Question: A few days ago, the Albanian Competition Authority published a report on banking sector monitoring. This report points out some issues related to transparency and fees applied by banks and makes some recommendations for your institution. What is your comment on that?

Governor: For the Albanian economy, it is important that all institutions observe the law and implement obligations stemming from the law. The report of the Competition Authority that we have received at the Bank of Albania does not specify any element of unreal competition as regards the Albanian banking system. The official report of this institution does not point out any problem on competition. As regards other issues, such as fees, prices and transparency, they are problems with a wide structural basis, where the entire Albanian macro-economic environment is involved.

The Bank of Albania, I have repeatedly said, since long ago, has opened an important trialogue on these processes with a view to raise the awareness of Albanian consumers on selection of their bank. I confirm that the banking sector is the most monitored, supervised, accountable and transparent sector in Albania and the most regular taxpayer. Certainly, the move towards structural reforms and the market expansion and deepening over the 20 years of transition constitute the main goals of the Albanian economy. Measures and actions of the Bank of Albania over the years, in a 360 degrees spectrum, are also an indicator of its responsible decision-making. The Bank of Albania does not make decisions for short-term and spontaneous shocks or temporary phenomena. It is interested in the expansion, deepening and formalisation of the market over the long term. Today's decision of the Supervisory Council of the Bank of Albania confirms this. The Bank of Albania has taken a number of measures in order to provide the Albanian banking system with more stimulus and the payments system with enhanced effectiveness, as well as to ensure an ongoing formalisation of the banking and financial market. Moreover, in the next meeting, additional measures are expected to be taken on banking product prices, mainly in Albanian Lekë, and banking system transparency.

It is important for all of us not to speculate about prices and fees of the Albanian banking system understanding that, firstly, they count for only two per cent of the banking sector income. Secondly, they are in line and balance with various structural reforms in Albania as well as increased costs present in countries in transition. What is important is the fact that for expenditures, fees and prices of some banking products in Albanian Lekë, there is room for adjustments. For that reason, the Bank of Albania, with its today's decision, widened the 'highway' of payments, thus enhancing the effectiveness of large and small value payments. The Bank of Albania puts a limit, a ceiling, on prices of the Albanian banking system for consumers. The 'highway' of services is widened in order for the banks to use it better, more effectively and with lower costs, which is in line with the law that is being drafted on the payments systems, in accordance with EU directives. All the same, the Bank of Albania imposes conditions so that the banks are more in line with costs and prices as regards payments in the Albanian Lekë.

Moreover, I would like to add that the process of public awareness and financial education is ongoing. Furthermore, I have an appeal for the Albanian consumers.  Data of the banking system and the Bank of Albania, now and in the future, set out all the conditions for the client to select the best bank for him or her and make use of the information about the full capacities of the payments system that the Bank of Albania provides for the banking system and the consumer.