TIRANA, Oct. 11 – On Friday, the Bank of Albania in cooperation with the London School of Economics and Political Science (LSE) held the annual conference titled “A new and courageous world? The future of banking in developing European countries; re-conceptualization of size, structure, ownership, policy and its incentives.”
The Governor of the BoA said that rapid development of information technology has made way for financial innovation and has challenged classic models of banking. The new instruments of credit payments, new actors of the financial market and new business models, such as banking and digital payments, increase the penetration degree of financial services. However, besides the classic agents of the financial sector, they also challenge the regulatory bodies of the system.”
President Meta added that “the traditional model of financial mediation based on the channeling of financial tools for the growth of economy is also sustained by the broad experience of some of the banks in Eurozone countries. Central banks and supervising authorities are facing challenges in the field of policy-making not only in developing countries, but also in countries with developed economies.”
In reference to the economic climate in Albania, the Governor noted that the Bank of Albania has worked to improve the regulatory structure of the financial system further as well as to strengthen financial security networks in cooperation with other public agencies and international institutions. “We have adopted a modern framework for the drafting and implementation of monetary policies as well as supported its stimulation.” he said.
In this regard, the Albanian economy has made evident progress towards stable and long-term growth, marked by gradual acceleration of the growth pace, decline of unemployment as well as improvement of balance sheets in the private sector. Particularly, the banking sector showed to be liquid, capitalized and with good rentability indicators.
Furthermore, the Governor pointed out that the Albanian economy has solid potential to maintain as well as advance its growth rate. The strengthening of financial stability alongside the careful implementation of monetary policies further guarantee its stability.At the end of his speech, Governor Sejko stressed that the Albanian economy should constantly pay attention to technology innovation and promotion of financial services in various segments of society; the development of new financial sectors such as capital markets and pension and investment funds. He added that the economy also needs to enhance financial literacy, across the board that would help both individuals and firms establish sounder financial situations and reduce financial risks.
The first session of the conference addresses the continuously changing context the banking industry faces, due to the restructuring of banks, technological change, evolving regulatory environment and the monetary policy context. During the second session, the discussion investigates how banks in South East Europe (SEE) and in particular in Albania deal with the new challenges that arise both from regulators and non-bank financial entities. Also, the new challenges that these trends pose for authorities not only in terms of regulation and supervision but also in terms of policy implementation, are also discussed in this session. The third session is a discussion panel which addresses key issues in the future of banking and financial services. The discussion focuses on policy and regulatory choices and incentives to boost financial intermediation in Albania, the SEE region and beyond.
