The outcome of these developments is that a new focus is being placed on deposit insurance in the post crisis period. Deposit insurance is now considered as an essential crisis management tool and an important instrument for orderly liquidation of an unsound financial institution. A well-designed deposit guarantee scheme largely supports financial stability and financial crisis resolution by mitigating risks of and maintaining trust in the 1/3  BIS central bankers' speeches  financial system. However, recalling one of the most important lessons we learned from the global financial crisis, despite the mandate given to any institution, no player can alone deal with a systemic crisis and the consequences of strong spillover effects and contagion risks. It is essential that each element of the safety net develops robust mechanisms that aim to resolve financial institutions and stabilize the financial system as smoothly as possible, minimizing the cost to the economy. Moreover, financial stability can only be preserved by a well-coordinated financial safety net, which is supported by a resilient legal framework, proper tools and instruments and careful contingency planning for each of its elements. The Bank of Albania has dedicated much of the past 10 years to integrating the lessons learned from the recent financial crises into a new regulatory framework. Our financial safety net is further aligned with international best practices, as we coordinate our roles as supervisory authority, lender of last resort and, recently, resolution authority as well.
Of course, the topic becomes more sensitive considering the current global financial complexity and its fast-changing landscape, and in view of the newly-acquired functions of the Bank of Albania and ADIA under the new law “On the recovery and resolution of banks in the Republic of Albania”. According to this law, the Bank of Albania has been assigned as the Resolution Authority, whereas the Albanian Deposit Insurance Agency is responsible for the administration of the resolution fund, which encompasses investing it in accordance with the policy approved by the Resolution Authority. Moreover, the law gives a new role to ADIA as an important partner in drafting resolution plans, as well as a new source of financing banks’ resolution, therefore increasing the pool of resources available to the Bank of Albania for resolving failing banks. So, to conclude, once again, thank you very much for the opportunity to speak to you today. It is a pleasure to have you here and I hope you enjoy the rest of your stay in Tirana. I wish you all a successful event! Thank you! 3/3  BIS central bankers' speeches