PRESS RELEASE
Governor Sejko meets with banking sector to discuss on “Role of the banking industry in the future development of Albania”

On 29 May 2019, the Bank of Albania met with the banking sector to discuss on:  “Role of the banking industry in the future development of Albania”. This meeting, as an established tradition already, aims at further strengthening the collaboration of the Bank of Albania with the banking system. The meeting, organised upon the initiative and chaired by the Governor of the Bank of Albania, Mr Gent Sejko, was attended by senior officials from the Bank of Albania, executives of commercial banks, and representatives from the International Monetary Fund and World Bank Group.

At the beginning of his address, Governor Sejko stated that this meeting is aimed to come up with a concrete plan of measures to improve the quantity and quality of lending and broaden the range of financial products.

Regarding the banking sector performance, Governor Sejko underlined its valuable contribution to Albania's development, where the volume of financial savings administered by the banking sector accounts for around 70% of the GDP, whereas the volume of credit accounts for around 35% of the GDP. The Bank of Albania deems that the banking sector is the backbone of the financial system and the most professionally avant-garde segment of the Albanian economy.

The consolidation of the banking system and the continuous reduction of credit risk are expected to drive to a growth of lending in Albania. To materialise this objective, Governor Sejko  invited the representatives of the banking system to adopt a more active approach in fulfilling their primary mission, that of a sound lending to economy.

Governor Sejko added that the banking sector should undertake steps to broaden the range of credit products and to fund projects in the Albania economy, in sectors such as agriculture and innovative business start-ups in the field of information technology. In parallel with this process, the banking sector should pay more attention to selecting and financing the sectors that offer a high potential for returns. Also, the banking sector should supplement the range of financial products with derivative instruments for hedging against the exchange rate, especially for borrowers exposed to it.

Concluding, Governor Sejko stated that the banking sector has an essential role to play in providing payment services to the economy. In this vein, to improve the retail payment market, the Bank of Albania has finalised the draft law on “Payment services”. The approval of this draft-law would provide the preconditions for promoting innovative technological solutions, and introducing more efficient and less-costly instruments, which foster competition in the market, and ensure transparency and overall consumer protection .

• Governor Sejko address

In his address, the Chairman of the Albanian Association of Banks, Mr Silvio Pedrazzi stated that the banking system appears stable and liquid, a precondition for qualitative lending to the economy.  Mr Pedrazzi urged enterprises to present new projects for financing, which generate employment growth in economy. Concluding, he affirmed the commitment of the banking sector to contribute to the further development of economy in Albania.

The meeting continued with two specific presentations on:” What can be done more to increase lending and how”; and “Modernising the payment systems”. The participants discussed actively on the presented topics and issues that came forth during the presentations. 

Upon conclusion, participants assessed the meeting and discussions as fruitful, and affirmed their commitment to take this joint effort further, by working together on drafting a set of measures based on the conclusions achieved in this meeting.