This will promote consistency in the implementation of standards, a level playing field, and the reduction of unnecessary regulatory burdens. It will also diminish banks’ incentives to engage in regulatory arbitrage across different jurisdictions. Work is underway on a variety of fronts to promote such co-operation. First and foremost, the Basel Committee’s Accord Implementation Group, or AIG, is working to foster information-sharing among supervisors to promote consistency of Basel II implementation. The AIG is encouraging home and host supervisors, including those from non-G10 countries, to use actual banks’ implementation plans as the basis for heightened co-ordination and communication. The Committee welcomes the work being done in a number of non-member countries and believes that continued outreach is essential. Dialogue with countries outside the Basel Committee played a critical role in the development of the revised framework, and I am personally committed to continuing such dialogue in the future as the new capital framework moves into the implementation phase. Adoption of Basel II: who and when? I would like to share some thoughts on when and how the new framework should be adopted in different countries. I am not referring specifically to Turkey with these comments, as it is not for me to talk about your plans in this respect, but I would like to make some comments about how we see the process in general terms. Let me begin by emphasising that I cannot answer the question of when or how any country should adopt Basel II.
Hence, after putting into operation the real time gross settlement system and the automated electronic clearing house system, the establishment of a loans register is presently aimed at. After the completion of the automated electronic clearing house system, another possibility is created not only for the banking system but also for the business of services of a periodic nature, so as to enhance its economic efficiency. •  The Bank of Albania deems that a banking system helps the economic growth if it is sound financially, since the developing economies, such as our economy, are generally characterised by a fragile stability. Therefore the Bank of Albania has taken a number of measures, aimed at enhancing its supervisory abilities, with the purpose to have a strong, sound and efficient banking system. Regardless of the positive developments, still much has to be done. The degree of financial intermediation continues to be relatively low. Some economy sectors, such as agriculture, continue to be slightly credited or not credited at all. The banking credit contribution to productive investments is still low, and moreover, given the high weight of lending to support the trade activity, the conclusion drawn is that the majority of loans go for financing the imports. Also, the degree of using the banking system is not in the required parameters, and moreover, the degree of using cash is still high. During the current year, it has been worked for improving the existing Law “On Banks in the Republic of Albania”.