Governor Sejko attends the International Conference on “Diversifying the financial system through capital market reforms”

On 19 May 2022, the Governor of the Bank of Albania, Mr Gent Sejko, attended the International Conference on "Diversifying the financial system through capital market reforms", organised by the Albanian Financial Supervisory Authority (AFSA), the Embassy of Switzerland in Albania, and the World Bank (WB).

The proceedings of the Conference were opened by the General Executive Director of the Albanian Financial Supervisory Authority, Mr Ervin Mete; the Deputy Head of Mission of the Swiss Embassy in Albania, Mr Patrik Meier; the Permanent Representative of the World Bank Office in Albania, Mr Emanuel Salinas; the Deputy Prime Minister in Albania and Minister of State for the Reconstruction and Reform Programme, Mr Arben Ahmetaj.

The Conference was held in three main sessions. The first session, moderated by Michael Edwards, Senior Advisor for Financial Sector at the World Bank, focussed on "Financial Sector Development in Albania - from strengthening stability to supporting economic growth". This session brought together in a discussion panel the Governor of the Bank of Albania, Mr Gent Sejko; the Minister of Finance and Economy, Ms Delina Ibrahimaj; and the General Executive Director of the Albanian Financial Supervisory Authority, Mr Ervin Mete.

In his input, Governor Sejko, in capacity of safeguarding financial stability authority, stated that the activity of the banking sector in Albania is stable and with good indicators of performance and financial resilience.

The Governor introduced the positive results in the framework of reducing non-performing loans. The latest data show the non-performing loans ratio dropped at 5.24% in March 2022.

Also, related to the banking system, the Bank of Albania deems that the consolidation of the banking system is already a welcomed development, which will revitalise the banking activity, will enhance the banking efficiency and will bolster development and innovative policies with regard to credit and payments.

The last couple of years were both unprecedented and challenging to the Albanian economy and banking sector. Nevertheless, we are pleased to conclude that the banking and financial system have succeeded in coping with these challenges. In addition, the banking system, in recent years, has provided an improved increasing contribution in the economic growth.

In terms of modernising the payment system, the Governor highlighted that the Bank of Albania has been committed to its development. To this end, substantial amendments have been made in the regulatory framework on payment systems, which will be a factor to promoting competition and innovation. The modernisation of these systems through digitalisation and innovation will be achieved through a well-regulated development and clearly-set goals.

In this context, diversifying the financial system through a broad gamma of instruments and services that satisfy the needs of public is an initiative, which have taken additional attention in recent years, aimed at adopting to the requirements posed by the time. Nevertheless, it is crucial and indispensable that each development in this regard be always based on secure and efficient infrastructures, related to the financial system, the public and the economy.

Mr Sejko pointed out on the continuation of the discussions and coordination of efforts for achieving a common and very efficient approach to accomplishing the aimed projects, in both decision-taking and technical levels.

Concluding, the Governor addressed one of the recent challenges, the crisis of prices. In this regard, preserving inflation remains the main objective of the Bank of Albania, while emphasising its readiness to use every legal instrument available to guaranteeing the stability of prices.

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