Second, we could wish for lesser volatility in markets, greater credibility of regulatory and enforcement systems, and more responsible and prudent lending standards. Third, let’s wish for much higher attention being paid by all stakeholders towards risk management, better governance practices and more relevant disclosures; and Fourth, we could wish for top priority being given by regulatory authorities, rating agencies and auditors towards risk and risk mitigation, with tough and decisive action being taken in the event of any unhealthy developments. These, in my view, would be the broad wishes, but each of these “wishes” would probably have a series of sub-wishes to expand the scope of the main wishes, and consequently many more could be added, depending on various national and international imperatives. Mr. Chairman, as with all good wishes, it is easy to wish, but a lot more difficult to make the wishes come true! Unfortunately, even the highly creative financial community will not be able to perfect some “mantras” or conjure up some suitable derivatives to make these wishes come true! Necessarily therefore, a lot of painstaking work will need to be done in order to translate these and other wishes into reality. Let me now dwell briefly on a seven point framework, which in my view, would be useful to ensure stability and integrity of the world’s financial system over the next few years. First, as a global financial community, we should establish pragmatic standards in relation to the creation and sustenance of globalized financial instruments, (particularly complex, structured finance products).
Simultaneously, it is necessary to assess the systemic risk in both, the financial system and the banking one, by constructing special indices and implementing best practices in stress-testing. In terms of completing the framework on management of emergency financial situations, importance should be given to the legal and regulatory reviewing and improvement process, the cooperation between public authorities and timely identification of various problems, particularly in systemically important institutions. The Bank of Albania has already entered in this reviewing and improvement process of the regulatory framework, on the basis of several pre-set objectives. Concluding, I would like to emphasize that the countries in our region have successfully overcome a difficult period as a consequence of the international financial crisis. However, there are numerous challenges ahead. They require an ongoing commitment of all the factors of the country’s economic and political life. The need for coordinating the actions both locally and regionally is an absolute priority. I think there are in place all the prerogatives for making this cooperation effective, honest and of mutual benefits to each country in the region. To this end, I think that the European Fund for Southeast Europe will continue to play an important role, which once again I take this opportunity to congratulate for the work it has done and the commitments it has taken for the future. Thank you! BIS central bankers’ speeches  3