Other obstacles to investment  The picture is, however, more complex than simply one of firms that underinvest having difficulty in raising external funds for investment. Of the firms in the survey that said they had invested too little, most cited other financial and non-financial obstacles as well. The most important of these was constraints on using internal rather than external funds – ie using profits – for investment rather than for distribution to shareholders or purchasing financial assets (including M&A). Nearly 70% of the firms who said they had underinvested, cited lack of internal funds for investment as an obstacle. Over 60% judged distribution to shareholders and purchasing financial assets as the most important use of internally generated funds. In fact, only a quarter of all firms prioritised using their internally generated funds for investment purposes (Chart 3). Three-quarters of firms put investment behind distribution to shareholders and investment in financial assets when assessing the most important use of internally generated funds. 8  All speeches are available online at www.bankofengland.co.uk/speeches  8  Chart 3: Most important uses of internal funds % of businesses 35  Firms with too little investment Firms with appropriate levels of investment All firms  30  25  20  15  10  5  0 Funding investment  Purchasing financial assets (including M&A)  Distributing to shareholders / owners  Keeping as cash balances  Notes: Question 17: ‘When you think about using internal funds what do you generally prioritise?’.
Ardian Fullani: Opening, extension and modernisation of the primary and secondary treasury bill market Address by Mr Ardian Fullani, Governor of the Bank of Albania, at a meeting with the Minister of Finance and representatives of all banks in Albania, Tirana, 8 April 2005. *  *  *  Honored ladies and gentlemen! First of all I have the pleasure to thank you for your willingness in finding the time to take part in this work meeting. I would also thank your technical staff for the devotion shown in dealing with this issue, which constitutes one of our priorities at the Bank of Albania. At the Bank of Albania conference on “Central banking in the time of integration” I launched, interalia, the idea of the need for qualitative developments in the banking and financial system and this as closely connected with the need for further increasing the intermediation role of this system in the economy. It is understandable that the implementation of this idea would simultaneously require the giving of more possibilities to the banking system, so that this system carries out its role better and more actively. The topic we are discussing today is in this line. I am strongly convinced that the treatment of this issue did not appear as something unexpected, but it is a logical result of the positive developments taking place so far and the banking system awareness to be more active in its role for raising public confidence in the system.