The main externalities in today’s international monetary system are most visible in the interaction between the advanced and emerging economies. The rising importance of the emerging economies has perhaps been the most important development since the Bretton Woods framework of fixed exchange rates was abandoned in the early 1970s. China and India alone have brought 2 ½ billion people into the world trading system, with many more in other countries such as Brazil and Russia. And over the next five years, emerging economies are expected to account for almost three quarters of total growth in world output. Trade has promoted development in China and other emerging markets, and has benefited the rest of the world as the costs of a range of traded goods and services, particularly manufactured goods, have been driven down. But the emergence of the accompanying imbalances in current accounts had huge effects on the global pattern of spending. Between 1998 and 2006, annual output in high-saving economies expanded by around $ trillion – $ more than the growth in domestic demand in the same economies. The rise in  BIS central bankers’ speeches  1  output relative to demand in the high-saving countries was only possible because there were matching capital flows. Capital flowed “uphill” from many of the emerging markets to advanced deficit economies, not an obvious sign of capital moving to exploit profitable investment opportunities.
Nonetheless, also thanks to your work, I find that the awareness of decision-making public authorities in this regard has improved significantly. I had the opportunity to communicate about these issues today to the parliamentary, Commission of Economy and Finance. I am confident that the work started by the Ministry of Justice for the revision and improvement of some important legal acts, including the Code of Civil Procedures, will be finalized, incorporating and approving some concrete proposals for amendments submitted by the banking industry and the Bank of Albania in order to enhance the process of collateral execution. In addition, upon the conclusion of legal processes, it is pivotal to proceed swiftly to write-off loss loans from the bank’s balance sheets, in accordance with the requirements of the regulatory framework. We would kindly ask you and your shareholders for dedication in this process, not only to find the necessary human and financial resources, but also the most appropriate forms for a quick, transparent, and consistent handling of non-performing loans. We need to bear in mind that lending carries along risks that are difficult to identify at the time of disbursement. These risks are determined not only by the quality of bank lending procedures, but also by significant external factors, including the performance of the economy. This uncertainty permeates the current phase our banking sector is going through. Therefore, it is indispensable that bank management structures and their shareholders commit the necessary financial resources to cope with the possible additional costs in the future.