PRESS RELEASE
Governor Sejko attends the Conference organised by the Central Bank of the Republic of Kosovo on the occasion of the 25th Anniversary

On 15 November 2024, the Governor of the Bank of Albania, Mr Gent Sejko, attended the High-level Conference on “ Bridging Borders, Building Futures:  SEPA Integration for Financial inclusion - Empowering Growth and Financial Resilience” hosted by the Central Bank of the Republic of Kosovo in celebration of its 25^th anniversary.

Governors of central banks, high-level managers from regional supervisory authorities and representatives of international financial institutions attended this Conference.

The Governor of the Central Bank of the Republic of Kosovo, Mr Ahmet Ismaili, opened the Conference, while the President of the Republic of Kosovo, H.E.Ms Vjosa Osmani, and the Managing Director of the International Monetary, Ms Kristalina Georgieva delivered the greeting speeches at this event.

The proceedings of this Conferenced focused mainly on: integration into SEPA; digital transformation and its implications for financial services; enhancing financial stability in an evolving environment; and financial intermediation in the regional banking sector.

Governor Sejko was invited to deliver his comments in the third sessions of the conference on “Financial intermediation within the Banking system in the region”.  Discussions in this panel focused on the modernisation of payment systems urged by the presence of foreign banks and the expansion of digital banking adoption, a decisive factor for bolstering financial inclusion.

Governor Sejko shared with the panellists the view of The Bank of Albania regarding the theme of the panel, highlighting that ensuring a safe and efficient payment system is a core mandate of the Bank of Albania.  While the primary objective of the central bank is price stability, creating a safe environment for a smooth operation of payments is imperative for the implementation of monetary policy and preservation of financial stability and at the same time, for the promotion of financial intermediation.

The Governor added that payment systems are the backbone of the financial market and economy as whole, hence their safety and efficiency are crucial for enhancing financial intermediation.

Next, Mr Sejko discussed on the considerable facilitation that digitalisation has brought in the area of payment system and the role of central bank in the area.  Referring to the case of Albania, he stated that, since 2018, the Bank of Albania has intensified its efforts to enhance financial inclusion and the use of electronic payments through the National Retail Payment Strategy (2018-2023) and since 2021 continuing with the Western Balkan Payment Modernization Project.

In the framework of this Strategy, the Bank of Albania has aligned its legislation with the European one payments through the transposition of Payment Services Directive PSD2 and the Directive on Electronic Payments, both of which are critical for the success of SEPA.  Results from market, regarding innovation and competition that the law promotes are encouraging for both the formalisation of the Albanian economy and for the financial intermediation.

In addition, the Governor listed certain initiatives aimed at enhancing the security and efficiency in the domestic market of payments, also its integration with the European market, such as: The Law “On payment account with basic features, which aims to enhance the financial inclusion of the population and at the same time to promote digital payments as a cheaper means of payment. The implementation of the Albanian Interbank Payment System for domestic customer payments in euro (AIPS Euro) system has increased dramatically the use of interbank transactions for the settlement of domestic euro-denominated transactions.

Concluding his remarks, Governor Sejko highlighted that Albania’s membership in the geographical scope of SEPA is a national priority, as it marks a milestone on the country’s path to the European integration.  In this regard, he added that Albania is the first country in the region to submit the formal application to be part of SEPA. Currently, this application is being reviewed by the European Payments Council, which manages the SEPA schemes, as well as by the European Commission.