Publication Date 09.11.2017
“Banking developments and financial market infrastructure. The role of structure, size and market infrastructure in risks mitigation and financial intermediation”
The Bank of Albania, in cooperation with the South East European Studies at Oxford, holds the annual conference: "
Banking developments and financial market infrastructure. The role of structure, size and market infrastructure in risks mitigation and financial intermediation
This conference is organised under the auspices of the Governor of the Bank of Albania, Mr Gent Sejko, and was attended by the President of the Republic of Albania, H.E. Mr. Ilir Meta, the Minister of Finance and Economy, Mr Arben Ahmetaj, ministers and members of the Albanian Parliament. The conference was also attended by governors, deputy governors, and high-level representatives and management boards from other central banks, Ambassadors in Albania, representatives from international financial institutions, such as the International Monetary Fund and the World Bank, representatives from the academia, the banking and financial system, and the media. This conference is organised in the framework of the Co-operation Agreement signed between the Bank of Albania and the University of Oxford.
The proceedingss of the conferenced were opened by the Governor of the Bank of Albania, Mr Gent Sejko; the Director of South East European Studies at University of Oxford Mr Othon Anastasakis, the Minister of Finance and Economy, Mr Arben Ahmetaj; and the President of the Republic of Albania, H.E. Mr. Ilir Meta.
Governor Sejko welcome address
In his address, Governor Sejko presented an overview of macroeconomic developments in the region, the euro area and Albania. He said that from the international perspective, the overall situation is increasingly more supportive. On euro area countries, he pointed out that many of our trading partners are experiencing an overall positive momentum concerning economic growth, and forecasts are optimistic.
About the Albanian economy, he added that in the last quarter of 2017, the financial and economic situation is improved , underlining that the effects of the monetary policy have maintained the stimulating trend, aiming at closing the negative gaps of prices and output.
Governor Sejko added that financial stability is characterised by a positive situation. The notable decline in non-performing loans in the balance sheet of the banking system is a prominent achievement.
He emphasised that Positive developments in the banking sector and the economy have supported the further improvement of capitalisation, liquidity and profitability indicators.
The Governor pointed out that the banking industry in Albania enjoys full financial soundness, against the backdrop of an optimal liquidity and capitalisation situation, as a key prerequisite for financially supporting the economic developments of the country.
Related to the financial system, he said that in 25 years from the establishment of the two-tier banking system in Albania, important steps have been made to promote the financial market, such as the securities and capital markets, including the establishment of the relevant supervisory and regulatory institutions.
President's address (Albanian)
Yet, despite these developments, the financial system remains dominated by the banking system and, taking into account that its development is a key factor for promoting economic acitivty and enhancing welfare, the expansion and deepening of the market remains a challenge.
In conclusion, the Governor said that the Conference has become a prevalent event in the research and professional activity of the Bank, aiming to explore and respond to many challenges and dilemmas for our national economy and beyond, which, given their nature, effect and interlinks, are present across the region of the South East Europe.
The first session addresses the nature of risks in the Albanian and SEE economies, interlinks, and the resilience to these risks.
The second session discusses the challenges and policy options faced by central banks and supervising authorities.It wll also keep in focus the role and efficiency of the monetary policy, exchange regimes, macroprudential and regulatory changes and other institutional arrangements in the presence of financial market limitations.
The third session, the panel of Governors, brings together in a special discussion table: the Governor of the Bank of Albania, Gent Sejko, the Governor of the Central Bank of the Republic of Kosovo, Fehmi Mehmeti, the Govenror of the Central Bank of Montenegro and other senior central bank representatives.
The panel will discuss the role of the financial market and its infrastructure, in particular the role of missing links (money market, pension funds, mutual funds, etc.) and recent fintech expansion, in the current developments with respect to risk, resilience, and efficiency of monetary and financial stability policies.