No. 37 Publication Bankieri October 2020

PAYMENT REVOLUTION AAB MEMBERS www.aab.al

CONTENT Editorial Payment revolution in - The "creative destruction" for a new business model in banking Prof. Asoc. Dr. Elvin MEKA 5 Bankieri No. 37, October 2020 Frontline Publication of Albanian Association of The new law on payment services - An important and welcomed development Prof.Dr. Luljeta MINXHOZI 6 The new Law on Payment Services - Challenges and opportunities for the Albanian banking sector Kerem PAMUK No. 37 Publication

October 2020 Ardian HASA Bankieri Gentian CAPO 9 New developments in the field of payments - An open market for competition and quality services Geis ÇEKU, MSc. Jonida KËLLEZI Perlat SULAJ 12 Seven Systems for Smooth and Efficient Payment Operations Vladimir VASIĆ 17

Special Pandemic, public debt and the economy Anila DENAJ, Minister 19

Intervista UNION – dedicated to automatization and modernization of banking services PAYMENT Flutura VEIPI 24 REVOLUTION Banking System Banks - a indispensable reality for the economy and society Dr. Spiro BRUMBULLI 26 Beyond loan holiday/moratorium - Issues to be addressed and managed by the banking sector Admira LLAZARI 28

EDITORIAL TEAM: Experts's Forum The new legislation on capital market - the right investment for developing and deepening Elvin Meka the Albanian financial system Editor-in-Chief Eftali Peçi Niko KOTONIKA 31 Coordinator Moving towards a digital-first mindset Dorina Zarka Vladimir DJORDJEVIC 33 Photographer Digital Renminbi - a technical inevitability Design & Layout: FCB Afirma Dr. Genti BEQIRI 35

Printed by: CSR 38 News From Banking Sector 42

AAB: Activities - Trainings 43

Bankieri is the official publication of EDITORIAL BOARD: the Albanian Association of Banks which mainly focuses on the Albanian Silvio PEDRAZZI Georgios PAPANASTASIOU Adrian CIVICI AAB Chairman & CEO AAB Executive Committee Dean, Faculty of banking industry. Bankieri provides of Intesa Sanpaolo Bank Member & CEO Economics, Mediteranean readers with valuable information on Albania of Alpha Bank Albania University of Albania the financial industry's developments in general, and of commercial banks Maltin KORKUTI Dritan MUSTAFA Eleonora OLLI AAB Executive Committee AAB Executive Committee Chairman of Albanian in particular Member & CEO Member & CEO of Institute of Authorized of Credins Bank Bank Chartered Auditors (IEKA) ALBANIAN ASSOCIATION OF BANKS Street "Ibrahim Rugova" Andi BALLTA Ervin METE Spiro BRUMBULLI AAB Executive Committee General Executive Director Secretary General, SKY TOWER, 9/3, Tirana Member & CEO of Albanian Financial Albanian Association of Tel: ‘+355 4 2280371/2 of American Bank Supervision Authority Banks Fax: +355 4 2280 359 of Investments www.aab.al

October 2020 Bankieri 3 www.aab.al

Ti ke lindur për gjëra të mëdha

4 Bankieri October 2020 www.aab.al EDITORIAL Payment revolution in Albania The "creative destruction" for a new business model in banking

The law provides and promotes numerous opportunities for innovative processes and products, which will take banking and in Albania up, to a pretty much higher level.

with the revised European Union historical evolution of capitalism, being Payment Services Directive (or either a process or a product2. PSD2). It is worth mentioning here In this context, banks as large that, for the first time in Albania, institutions and the most innovative such a strong structural movement ones in the Albanian economy, have and development, at the European all the opportunities to turn into their level, starts and becomes part of advantage the possibility of the level the economic system so quickly. playing field, created by this law, for Certainly, it’s quite understandable cross-sectoral competition, not only that such a development happens between banks, but also between banks and non-bank financial institutions. within the Albanian banking system But, here it must be grasped that, now and sector, which remains not only they are not just facing a new product, the most serious, well - organized for which a mere adaptation, or and most capable activity to face and 1 incorporation into the current business Prof. Asoc. Dr. Elvin MEKA finance change, but also the closest model, is enough; it is already a new Editor-in-Chief to EU economic structures. business model, where one of its main pillars is the payment services! Beyond the well-known fact that the The new reality, in which banks new law will enable better consumer he Revised Payment Service will have to operate and be not only protection, the entry of new players Directive (PSD2), which entered competitive but also innovative, in the market, increased competition into force in January 2018, caused means that they must necessarily T and cheaper payment services, it will 3 the Fourth Industrial Revolution to avoid the "KODAK" effect, where not stop just at paving the way for a Ti ke lindur për bear its fruits, in the field of payments. the innovative institutionalization of payment service overhaul. From now This is so true that, within a very the payment service, realized nine on, they will never be the same as short time frame, radical changes are centuries ago by Bank of Venice and before, both in form and content, but being observed in Europe, in terms of huge investments made so far in above all, such law will completely gjëra të mëdha payment systems. the payment service, should not be "shake" the model of banking activity Thankfully, such revolutionary considered as sufficient to continue in the country. The legislation (the transformation has already knocked business as usual. This reality calls law and respective bylaws) will allow, on the doors of the Albanian financial for a more personalized effort with within the Albanian financial system, system, since quite a few months client and for an all-new approach, in the implementation of the "creative ago, the Assembly of the Republic of terms of attracting more new clients. destruction", iconized by Joseph The challenge here is now to produce Albania approved the new Law "On Schumpeter, who more than eight payment services". Generally, this new "needs" and moreover, to create decades ago argued that innovation is more added value for the customer! law makes a significant alignment the fundamental driving force of the

1 Dean of Faculty of Economy, Business & Development, European , UET. 2 Joseph Schumpeter: “Business Cycles: A theroretical, Historical, and Statistical Analysis of the Capitalist Process, Volume I”, 1939. 3 Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business. (Scott D. Anthony: “Kodak’s Downfall Wasn’t About Technology”, HBR, 2016).

October 2020 Bankieri 5 www.aab.al FRONTLINE The new law on payment services An important and welcomed development

The innovations of the law "On payment services" may affect the financial and economic system, through its three main effects: - promoting competition and creating innovative financial services, - better consumer protection; and - expansion of the representation of institutions providing payment services, throughout the territory of the Republic of Albania.

directive of the European Union, I would like to emphasize that PSD2 (Payment Services Directive the innovations of the law "On 2), into our financial legal payment services" may affect framework. In an international the financial and economic framework, such Directive is system, through its three main considered as a law with the effects: - promoting competition objective of regulating not only and creating innovative financial the payment system, but also a services, - better consumer law, which through innovation, protection; and - expansion of promotes a simultaneous the representation of institutions providing payment services, throughout the territory of the Republic of Albania.

Prof.Dr. Luljeta MINXHOZI1 Banks, payment and electronic Promoting Competition through First Deputy Governor money institutions, should be innovation The new law strengthens the careful in their decision-making, BoA's supervisory legal basis for by taking advantage of European payment services, by ensuring inancial inclusion of experience, in order to maximize impartiality and proportionality population and the reduction the effects of the law, but also in licensing and regulating the of cash in the economy has payment service providers. This F being careful that investments become an important priority for means that competition between the Bank of Albania (BoA) and made in new payment institutions Payment Service institutions will the National Payment System to comply with the required increase, through: Committee, to achieve the standards. • balancing the space for objective of reducing informality providing payment services and increasing transparency between banks and non- in the economy. In this context, bank financial institutions, since 2018, a number of important allowing the latter to open measures have been taken, in expansion of electronic payments payment accounts and order to modernize the market and electronic commerce. The issue electronic payment for small value payments. new law "On Payment Services" instruments, The recent adoption of Law is expected to contribute at • creating conditions for 55/2020: "On payment services" promoting the financial inclusion promoting innovation, in is one of measures taken and, at of population, allowing the the field of small value the same time, a very important creation of new financial services, payment services, creating achievement, in this regard. This easily accessible to the general opportunities to reduce law transposes an important public, and at lower costs. costs of these services and

1 The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy, or position of Bank of Albania.

6 Bankieri October 2020 www.aab.al

increase the number of their impossible to reach by financial monitoring and enforcement users, services, citing as an example: mechanisms. But, on the other • creation of new business coffee payment, public transport, hand, it is estimated that the models, with the concept etc. consolidation of consumer of open banking and home On the other hand, the protection brings added value to banking, that will facilitate establishment of payment the banking and financial system, the use of innovation in the initiation services is estimated to itself. Thus, the new law aims to: payment service for third have a direct impact on promoting • resolve disputes effectively, parties, such as: payment the electronic commerce and the through a detailed definition initiation services and use of home banking services, of parties’ rights and duties, institutions for account for effecting these payments. • establish units within information service. These These services, depending on the institutions, to address innovations will require policies of market players, may the protection of payment banks to share customer be developed by the institutions services’ users (similar to account information with themselves, that may assess consumer loan), as well as a other payment service incorporating the opportunities special unit within the Bank institutions, licensed by BoA, created by law, to expand the of Albania, for alternative • Facilitation space for the basis of payment services they dispute resolution. operation of small value could provide. These services payment systems by Banks, may be provided by payment Given the strong link that Payment Institutions and institutions, which cooperate with consumer protection has with those of Electronic Money, in banks, or by payment institutions, customer awareness about order to meet different needs which do not have any contractual rights and duties they have, for these services, from agreement with banks, but which their financial education will the market itself. The law enjoy the right to access the bank significantly contribute to stipulates that for payment customer's account, through promoting the financial education systems, which are not of relevant license, obtained by the of the population. systemic importance and do Bank of Albania and the client’s Financial education is an im- not have such activities, for consent. portant objective for all payment which the protection regime institutions, both regulatory au- created by law no. 133 dated Strengthening institutions for thorities and financial institu- 09.04.2013 "On the Payment Consumer Protection tions. For this reason, it has been system" applies, the provider Considering the fact that identified as an important priority may operate payment customers' trust in financial in by National Payment System systems without the need of institutions is an important factor Committee. additional license, but simply in the success of their activity, the being supervised by the Bank Law “On Payment Service" has Presence of payment service of Albania. prescribed a special attention providers throughout entire to this regulatory aspect. The territory of the Republic of In a strategic perspective, main benefits of consumer Albania by promoting competition it protection, which are included in The increase in the number of will encourage the creation of the concept of consumer as an financially involved population is new actors and new services option proposed by the European closely related to the presence in the financial markets, in mid Directive, are certainly addressed expansion of institutions that pro- - long term, by contributing to to consumers and micro- vide payment services, through- an increase of banks' activity. enterprises. Because these out the territory (including rural Through this law, the banking groups of payment system users areas). The opportunity to ensure system can include, in its have limited negotiating skills, such wide range of payment insti- activities, segments of the and usually a lower financial tutions in the future, is regulated, economy and the population, literacy, the law undertakes the in the law, by the model under which under current market development of a framework which "banks may provide pay- conditions, seem completely for consumer protection, with ment services through agents."

October 2020 Bankieri 7 www.aab.al

Currently, banks in Albania ing of accounts remotely, is bania’s viewpoint, as the regula- operate through a branch net- estimated to contribute sig- tory and supervisory authority, work, a practice that following nificantly to the financial in- much energy and capacities are the effects of global financial clusion of the population and really needed for drafting by- crisis turned out to be costly coverage of the entire terri- laws, which will enable an effi- and banks, in various ways and tory, with payment services. cient implementation of the law. measures, responded by reduc- • increasing trust in Albanian In this context, I would like to ing branch network and phys- payment institutions, at emphasize that our steps in this ical presence, mainly in rural the cross-border level, direction are being significantly areas. The innovation presented through the establishment supported by European experi- through the law is assessed in: of financial institutions with ence and technical assistance by • allowing banks to expand well-regulated governance international institutions, guar- their presence, by cooper- and risk management anteeing security in the steps ating mainly with non-bank structures. It is also worth taken, in a still uncharted terri- financial institutions, which noting that, the enactment of tory. currently have a consolidat- PSD 2 Directive constitutes The Law implementation also ed network of agents, in a an important step towards requires significant commitment less costly way for them, integration into the Single and investment from market • digitalization of services, Euro Payments Area players, themselves. From which means shortening the (SEPA) and opening up the this point of view, I believe that geographical dimensions interaction in the field of banks, payment and electronic of payments, thus allowing payments with the European money institutions, should be these services to be usable, Union. careful in their decision-making, even when the bank, or the by taking advantage of European payment institution, does not In conclusion, I would like to experience, in order to maximize have a physical presence, in emphasize that the drafting and the effects of the law, but also a particular area. Such de- adoption of the law was an im- being careful that investments velopment, supported by portant step, but there are still made in new payment institutions the necessary regulatory many steps that must be taken to comply with the required reviews to allow the open- by all parties. From Bank of Al- standards.

8 Bankieri October 2020 www.aab.al FRONTLINE The new Law on Payment Services - challenges and opportunities for the Albanian banking sector

BANKIERI: 1. What kind of changes do you expect to occur in your bank, regarding the implementation of the requirements stipulated by the new law? 2. What could be the biggest "threat", the new law could create for banks? 3. Do you think that new payment instruments will be developed and introduced in Albania?

number of cards and POS termi- for FinTech companies, banks nals, there is still a long way to that may not capture the right go at reaching the figures of Eu- position, could suffer. Certainly, ropean average. when competition between ser- The law, in a broad sense, vice providers increases custom- seems quite promising, at ers, it is expected that in a very motivating and guiding people short time, end-users will enjoy and financial institutions, to many benefits and solutions in invest and use financial payment payment systems. systems, as well as digital Another threat, closely linked channels. As BKT has invested to increased competition, will be for years in this field, it will adapt for banks that have not invested quite easily to future changes enough in payment systems and Kerem PAMUK in the market and will offer the digital solutions. As competition Head of Cards & Payments Department highest quality to existing and and product diversity increases, BANKA KOMBËTARE TREGTARE potential customers, with the institutions that provide poor and current portfolio of products and unsatisfactory services will see projects that will be completed dramatic changes in numbers. within the year. 1. For more than a decade, 3. We will face and enjoy more Banka Kombëtare Tregtare has 2. Globally speaking, one of solutions for digital and mobile made large investments in pay- key challenges for banks, for a payments, in the coming period. ment systems and is the first long time, is the clash between The user experience will improve bank to introduce several pay- the disruptive approach of Fin- and, in the end, will become digi- ment instruments, in the Alba- Tech (financial technology) com- tal. As technology evolves rapid- nian market. Constant efforts panies and the traditional/con- ly, every generation is somehow has been made to increase the ventional banking. Over time, coping with the new UX, espe- volume and number of payment the two models have merged cially with mobile phones. High instruments transactions with and created new synergies and internet penetration and stun- cards, and especially to replace very successful alliances, but ning smart devices’ ownership cash with non-cash, offered by as we all know, the early stages figures change the daily lives of digital payment instruments. of clash between two complete- Albanian people of all ages. The However, despite the fact that ly different ways of doing busi- pandemic also had an impact on BKT holds a leading place in the ness were painful, especially for people's access to technology Albanian market, in terms of the banks. As the law opens the door solutions for payment systems,

October 2020 Bankieri 9 www.aab.al such as contactless payment and originator and the beneficiary authorities to proceed as soon e-commerce shopping. are located in different banks. as possible with the drafting of In this regard, since the Despite the fact that a similar bylaws, rules and policies, which legislation allows and directs service today is covered by will enable the functioning of this the market, it is highly expected card payment system, howev- law, according to deadlines. that the penetration of mobile er, the new law on payments payments will be much higher brings this in the context of 2. Personally, I think that the than plastic card payments. payments through digital law should not be seen as a threat In the very near future, more channels and the integration to banks, but as a good opportunity Albanians will use their mobile of banking systems and insti- to increase the payment activity devices, not only for daily banking tutions operating in the Re- and why not the income from activities, but also for payment public of Albania, thus making such activity. It is true that the transactions. domestic payment costs much new law allows the introduction of lower than existing ones, and new actors with innovative ideas, helping at reducing cash pay- which, also supported by the law, ments. will require access to the accounts • The second effect is the of existing customers. On the other need of banks for significant hand, in a country like ours where changes and investments in the number of people who have a existing infrastructure and bank account, compared to the total systems, due to the fact that population, is low, the introduction the Article 30 of new law: of new actors in the payment "Access to accounts held in market is seen as an component a bank", requires banks to that is expected to increase the provide access in customer number of people who will have accounts and allow payment access to the banking system. The institutions and electronic increasing number of people with money institutions to provide access to banking system means payment services. These more opportunities for banks to expected and mandatory offer new banking products to changes for banks will require new customers, even though their Ardian HASA banks to budget significant primary need may be access to Head of Operational Division/Management financial and human resources the payment system. Having said Board Member in the coming year. that, I think that banks, which will OTP BANK – ALBANIA be more open to the expected It should be noted that, such changes and more available for a law is implemented in Europe partnerships with new actors that 1. I think that the Law No.55/2020 and many other countries and its may enter the market, will be more on payment services, whose one entry into force has brought many advantageous than banks that may of its main scope is: establishing, innovative ideas and changes in see the law as a threat to their licensing, organizing, the activity the public behavior and opinion, in activity. So, my conclusion is that, and supervision of payment insti- using banking services, by using the sooner the bank adapts to the tutions, has a direct effect on all digital channels already capable changes brought by this law, the banks, in two main aspects: to offer almost the same range higher the opportunity to turn the • First, with the entry into force of services, which are offered by "threat" into an opportunity. of this law, a new opportunity the traditional model, with branch is added for banks to conduct a network. It is very important to 3. As I mentioned above, this new business model and serve emphasize that the approval of the law already exists in other coun- customers in real time, de- law is only the first step and there tries, and has been accompanied spite the fact that the initiator/ is an urgent need for relevant by an increase in the number of

10 Bankieri October 2020 www.aab.al new payment instruments. In this use of financial instruments, will provide payment services, but context, I think that in Albania by the general public. In these on the other hand, will increase the there will be adaptations of exist- framework, the adoption of the variety of payment services, as well ing actors and why not, newcom- new law on payments, taking into as their costs and revenues. As a ers in the market, who will notice account the PSD2 Directive, is result of reducing commissions good opportunities provided by welcomed, as its main objectives for services that will be provided the law, given that in our country are to encourage the intensive use by various entities, on the one the number of users of existing of modern payment instruments, hand, and the increase of customer banking systems is very low and, aiming to achieve about 10 "non- base/number of transactions, on the other hand, the number of cash” payments per capita per year, on the other hand, we estimate payments made today, in the form by end-2022, as well as to increase that the effect of economies of of payments in physical money, is the opportunities for access to scale will be positive. Raiffeisen higher than those made in elec- payment accounts, reaching an Bank has been identified from the tronic form. Both these elements account ownership ratio at the beginning as a bank of innovations create room for new players and level of 70% of adult population, by in the Albanian banking system, instruments. However, let us not 2022. by bringing modern banking forget that the success of this law For our bank, as an entity services and standards, so we also depends on the work that the licensed by the Bank of Albania consider the presence of the law an institutions will do, to complete the before the entry into force of opportunity to create a modern and legal framework that would make the law, additional investments comprehensive payment market, this law applicable. will be needed, in terms of supported by secure and efficient adapting the systems to the new infrastructures, as well as a wide law requirements, as well as range of payment instruments and rearranging the organizational services structures, according to the new legal requirements. The law 3. Raiffeisen Bank, by recogniz- prescribes stronger requirements ing the extremely high costs of us- for ensuring transparency to ing correspondent banks for pay- customers, and in this regard, ments in foreign currency within requires entities to establish the country, encourages the need structures and design procedures for possible interventions in this for alternative dispute resolution context, which would bring direct with their customers. We are benefits to Albanian citizens, giv- working in this direction, with ing them more options for perform the aim of ensuring maximum their daily transactions, easily and transparency to customers, setting in a cost-effective way. up special structures that will Another development could enable the review and resolution of be the direct debit scheme for the disputes between customers and Albanian market, which would the bank, as a provider of payment bring increased benefits, both services. from the perspective of consumers Gentian CAPO and businesses, thus supporting Head of Operations 2. Our bank does not consider the objective of wider financial RAIFFEISEN BANK – ALBANIA it as a "threat", but instead an inclusion. opportunity offered by the presence However, we think that we of this law, to increase the customer are late, regarding the need to 1. It is a well-known fact that the base and increase payment operationalize the national payroll Albanian economy is characterized volumes. From this point of view, of Public Administration, which by problems of a high use of the law will naturally increase would increase market efficiency physical money (cash) and a low competition among entities that and further stimulate competition.

October 2020 Bankieri 11 www.aab.al FRONTLINE New developments in the field of payments An open market for competition and quality services

Such innovation provides numerous advantages for the consumer, not limited to cost, time, quality, as well as for the account information service, thus supporting family budgeting, thus having a consolidated information on the accounts, but also for the economy as a whole, as it promotes the financial inclusion of customers who do not have, or have limited mandatory access to the banking system.

services, so the client receives a payment services" approximates package of financial services. the best EU practices and makes For more than 15 years, AK-IN- a contribution towards the VEST, established as a Universal promotion of free competition, Financial Institution, has been integration with the Single Euro adapted to retail clients and small Payment Area (SEPA1), laying the & medium businesses, by offering foundations of the interconnection financial services, such as: Loans, between the Albanian and Factoring, Guarantee and Bank European payments’ market. Commitments, Payments (inter- Pursuant to this law, even NBFIs national/ domestic), Money Trans- (despite the license they hold), fers - MoneyGram Int. for Alba- may also provide services in nia, Payments, Insurance Agent, the field of payments, and such Forex, Financial Intermediary innovation provides numerous AK – INVEST advantages for the consumer, as Geis ÇEKU, MSc. it promotes the financial inclusion HEAD OF RISK MANAGEMENT of customers who do not have, or DEPARTMENT Along with obvious advantages for have limited mandatory access to the consumer, such law promotes the banking system. In the framework of interaction a cooperating practice between he liberalization of provision between banking and non-bank- of financial services NBFIs and commercial banks, by ing institutions, some blocking Tby Non-Bank Financial allowing them to open payment practices have been eliminated, in Institutions (NBFIs), have been accounts and issuing electronic some cases by violating free com- long implemented in Albania, petition, by banks against NBFIs, payments instruments by NBFIs, by creating a better climate in such as the right of payment insti- the competition market and by at commercial banks. tutions to: facilitating customers in terms - open an account with a bank of time, distance and cost. NBFIs, and for offering relevant for the provision of financial services, services, create a wide and and Consulting. As a member of - participate in payment systems intensive network (agents), which SWIFT, it provides its clients with (directly and indirectly). is an established reality, built and experience in the payment indus- requested by the client, which has try, knowledge and expertise in: Despite innovations and posi- increased the quality of service to the specialized field of domestic tive aspects for the development them, through the location of each and cross-border small value pay- of the banking and non-banking agent, fast real-time processing ments; financial services regula- sector, cooperation between them of transactions and the reduction tory compliance issues - including and facilities offered for the con- of transaction costs. The NBFI AML/CTF, sanctions control, CDD/ sumer, I think that this law still network already functions as KYC, data protection and fraud. reflects some ambiguities, which a One-Stop-Shop for financial The adoption of the Law "On

12 Bankieri October 2020 www.aab.al would translate into future prob- regulatory framework, related developing and introducing sev- lems during implementation. Spe- to payments in Albania. Despite eral packages of digital services cifically, referring to the Directive this, clients will continue to ben- to the market, such as: (2015/2366) it is evidenced: efit from the competence of hu- a) real-time electronic money - the existence of NBFIs, which man, financial and technological transfer services via mobile, have payment activities, as resources of AK-Invest, as well enabling individuals and well as other financial activ- as will be able to integrate into businesses fast and secure ities. new markets faster, by having transfers (P2P payments), - the payment service as a sub- professional advisory support. as well as giving them more category of activities offered Monitoring local developments, to convenience and opportunity by the NBFI, whereas refer- support innovation to customers, to choose where and when ring to the law, the identifi- from now on, will serve the im- they want receive money, cation of NBFI (by the Direc- plementation of best practices in compared to the equivalent tive) seems as implied but is relations with banking partners. service of physical money. underlined as the presence of b) QR Code payments - local the Payment Institution, only. merchants have the oppor- tunity to use the EasyPay If here we are dealing with platform to sell their prod- such a divergence of the law from ucts, without need to have the directive, so if the aim of the an e-commerce platform of law is to "partially approximate their own. the Albanian legislation with the Directive 2015/2366 EU": Towards the future: scenarios and - Attention should be paid to instruments of transformation the avoid the inconsistency The situation created by the with the Directive from its recent crisis, but also by the fact partial implementation, that Albanian population has a low which could jeopardize hybrid access to financial services, led applications, paving the way the Parliamentary Committee of for a need for interpretations Economy and Finance to discuss from the outset. EASYPAY for approval, on April 30th, 2020, - These financial services, Jonida KËLLEZI the second Directive on “Payment currently provided by NBFIs, HEAD OF MARKETING Services”, which is expected to be pursuant to licenses grant- DEPARTMENT a very good regulator, especially ed by the Bank of Albania for FinTech companies. Current- and possessed for years by ly, the services from FinTech that AK-Invest (e.g. loans, factor- igrants’ digital payments, need to be rapidly developed in ing, guarantees, etc.), must lending and remittances our market, among others, are: maintain the same scope, Mhave increased signifi- digital payment services, instant even if the name of the NBFI cantly in recent years. Many gov- electronic money transfers, dig- (this does not happen with the ernment institutions, in various ital lending and digital invest- bank or EMIs) will change, parts of the world, have employed ments. with the aim of expressing various forms of digital payments However, for a successful ben- another institutional attribute and transfers, for tax refunds, efit of such opportunities, a coop- - the Payment Institution. social programs, salaries, pen- eration between banking system sions, emergency packages, etc., and FinTech institutions is re- As above, I think that the reg- in order to respect social dis- quired, as: ulator and the legislator will have tance, but also to help families 1) Providing real-time pay- to take these aspects into consid- and businesses in need. EasyPay ments requires B2B and B2G eration, when considering oth- responded to the current needs of integrations with all public er additional interventions in the consumers and local business, by services/utilities, as well as

October 2020 Bankieri 13 www.aab.al

with the billing of govern- card payment model. This ment services, or large Al- allows banking institutions banian corporations. These to cooperate with FinTech in integrations require large in- this sector, to reduce their vestments in resources and costs and provide lower cost technology, so banking insti- service to local merchants, tutions can choose one of the while increasing facilities for following scenarios: the final consumer. a. building this structure by themselves, which requires a lot of time and investment of their time, which is not FinTechs in the Albanian market favorable at the stage of have started to offer other affairs of our market; or b. partnering with FinTech payment models for merchants FED INVEST institutions in the country, (e.g.: QR payments), which thanks Perlat SULAJ EXECUTIVE DIRECTOR which already have such to technology will replace the card investment in place, for their payment model. clientele. ED Invest is the largest finan- 2) FinTechs operating in the Al- cial cooperative in Albania, banian market, have already Fwith about 73 thousand mem- established, for years, a very bers, resident throughout Albania, wide network of distributors, Conclusions offering services through 63 offic- or agents, even in rural areas, History has shown that crises es, located in urban and rural ar- where banking institutions (recall the global financial crisis eas. FED Invest has paved the way are not present. In order to of 2008) are the right mechanisms for the development of microfi- be efficient, setting up such to accelerate the transition nance in Albania and has scored 28 consolidated network again of consumers from the use of years of experience, in the field of requires a lot of resources, traditional financial services lending, deposits and advisory ser- training and expertise on to FinTechs. Along with pain vices for small entrepreneurs and the behavior of the unbanked and loss that Covid-19 brought farmers. Today, it is the financial customer. Meanwhile, ac- to the world, it gave FinTechs institution with the largest pres- cording to the new law on a tremendous opportunity to ence in rural areas in Albania. Such payment services, banking instantly increase their services, position is in line with its mission, institutions will be able to set geographic coverage and image. to expand the financial inclusion of up such a network of agents, These achievements, which were population in rural and peri-urban themselves. However, as per not made possible for several areas, by offering a wide range of above, it may be more effec- years, thanks to the pandemic financial services, based on mod- tive and efficient for them to were achieved within just a ern banking technologies. choose the option of coop- few months. Convenience and FED Invest has undertaken eration with FinTech institu- agility are the two competitive a number of initiatives in recent tions in the country, to whom advantages of this industry, years to modernize information they can transfer (outsource) which are essential to cope with technology systems, by providing some of their services. economic uncertainties. new financial and non-financial services, given the great need 3) FinTechs in the Albanian of population in rural areas for market have started to financial services, including offer other payment models payment services, along with the for merchants (e.g.: QR need for loans and deposits. FED payments), which thanks to Invest switched to the new ICT technology will replace the system, by the beginning of 2020, a

14 Bankieri October 2020 www.aab.al version of the latest FlexCube, and especially during 2020, during the the new law on payment services it obtained the license by Bank of pandemic. The number and use is expected to have a very positive Albania to provide payment service of debit cards and the number of impact. Despite the expansion of to its members. We are currently online payment transactions have banking system and the penetration in the testing phase for the utility increased. For June 19 - June 20 of their services, mainly in urban payment product, which will be period, the number of debit cards areas, payment services for rural the first payment product for FED with payment function (these cards areas provided by banks and other Invest members. represent 90.1% of all cards with financial institutions, are almost With the development of digital which payment function, by end- non-existent. June 2020) increased by 6.7% and FED Invest aims to pave the the number of POSs, for the same way for payment services in rural period, increased by 23.7%, while areas, within the year. Providing FED Invest aims to pave the way the increase in the number of POSs utility payment services is only was 17.7%, for January - June 2020 the first step, as FED Invest has for payment services in rural period, only. The number of online started important projects with areas, within the year. Providing transactions, compared to June its strategic partners, to provide utility payment services is only 2020 and June 2019, has increased a wide range of payment services the first step, as FED Invest has by 4.9%. to the population in rural areas, Despite this, it must be said including the online ones. These started important projects with that Albania continues to be among projects, also, include educational its strategic partners, to provide the last countries in Europe for and awareness campaigns for a wide range of payment services penetration and coverage with farmers, to explain the benefits to the population in rural areas, payment services, including online of farmers' access to payment ones. This is related not only to the services, ease of use, reduction including the online ones. recent history of providing banking of transaction costs, etc. We services to the population, but believe that their implementation also to the challenges of further will affect not only the further formalization of economy and formalization of economy and the technologies, payment services inadequate education of individuals expansion of financial inclusion of and products around the world have to use digital channels. The Bank rural areas, but also the creation increased, along with increased of Albania has played an important of new opportunities for further innovation for fast, secure and role in promoting and developing intervention of public and private cost-effective services. Albania is payment services, by improving and institutions and agencies, in the no exception, which has witnessed adapting the regulatory framework development of agriculture and an increase in recent years, in this regard, and the adoption of rural areas.

October 2020 Bankieri 15 www.aab.al

16 Bankieri October 2020 www.aab.al FRONTLINE Seven Systems for Smooth and Efficient Payment Operations The Association of Serbian Banks holds a significant place in the implementation of the National Strategy and will be actively involved in the development of new services, based on the application of these legal solutions, in accordance with the PSD2 initiative.

(3)Payment system for direct Turnover value of RTGS and the Giro Clearing payments from clients' accounts System in June 2020, in EUR millions: Turnover Daily turnover Share in near real-time: Instant value value in % Payment System (IPS), intended RTGS 109,816.42 4,991.66 99.53% for transfers according to the Giro Clearing 346.19 15.74 0.31% IPS 158.20 5.27 0.14% “instant” principle, i.e. in a short Cheque 18.33 0.83 0.02% period of time (close to real-time) Clearing TOTAL 110,339.14 5,013.50 100.00% from the payer to the payee. *Source: National Bank of Serbia, www.nbs.rs (4)Payment system for payments made with the domestic payment payment transactions are realized card: DinaCard Clearing System, as: in deferred time, according to the • Payment transactions (credit net settlement principle. transfer), based on a payment (5)Payment system for interbank order issued by the payer; Vladimir VASIĆ and international (only with the • Collection transactions (direct Secretary General Central Bank of Bosnia and debit), based on a collection ASSOCIATION OF SERBIAN BANKS Herzegovina) foreign exchange order issued by the payee clearing, intended for the reali- (creditor). ayment operations in Serbia zation of payment transactions in are under the jurisdiction of euros. As part of banking services, seven payment systems that various technologies for submitting P payment orders and accompanying enable transactions to be performed The Association of Serbian smoothly, with minimal retention Banks, as the second payment oper- Number of payments in RTGS and the Giro of funds in payment channels. The ator, is responsible for the following Clearing System in June 2020: Number of Daily number payment systems: Share National Bank of Serbia maintains payments of payments the banks’ business accounts (1) Payment system for inter- RTGS 17,008,209 773,100 72.98% and is responsible for organizing, bank clearing and settlement by Giro Clearing 3,747,473 170,340 16.08% managing, and operating the cheques; IPS 2,093,073 69,769 8.98% following payment systems: (2) Payment system for inter- Cheque Clearing 455,423 20,701 1.95% (1) Payment system for real-time bank clearing and settlement of TOTAL 23,304,178 1,033,910 100.00% *Source: National Bank of Serbia, www.nbs.rs interbank payments: RTGS direct debit. (Real Time Gross Settlement), documents have been developed that intended for payments exceeding The main participants in payment provide an easy, yet secure way to the legally defined amount (large systems are Banks, which are in provide payment and billing services payments), in real time on a charge of managing funds on clients’ from/to clients’ accounts, based on gross basis (the entire amount of current accounts. Other participants services for accessing current and each individual transaction); in the payment systems are: Pay- business accounts without coming (2)Payment system for payments ment Institutions and Electronic to a branch office, as well as one- by interbank settlement: Giro Money Institutions, which maintain time and multiple payment and Clearing (GC), intended for payment accounts for clients’ ac- billing services, on behalf of and for payments below the legally counts and exercise their participa- the clients. Technological solutions defined amount (small payments), tion in payment systems through the are mainly based on web platforms in deferred time, according to the banks. of banks that provide electronic net settlement principle; In accordance with the Law, services, i.e. automated solutions

October 2020 Bankieri 17 www.aab.al for the payment and collection on the category of “the best payment credit cards, debit cards or payment pre-submitted payment orders systems solutions”. The system accounts. Many innovative solutions (standing orders), i.e. authorization has been modernized several times offer additional functionalities for payment execution (direct since then and is now the basis that, in addition to payments, debit). of working with cheques in the enable merchants and financial These services are also recog- Republic of Serbia. institutions to interact more closely nized in the legislation, which de- The ASB Direct Debit Clearing with customers and provide added fines the form, conditions, manner Payment System is a modern value (e.g. loyalty programs, and deadlines of payment service payment system, harmonized with individual offers, etc.). At the same providers in the implementation the principles and standards of time, security has been improved of payment orders, but also in the the European Union, providing the by implementing new methods field of client notification, custom- payer and payee with a reliable way and standards that are available er identification, data protection to settle mutual obligations, in a fast and easily accessible on mobile and other customer interests. In and efficient way, and complying platforms (biometrics and location accordance with the Law on Pay- with the state digitalization policy, identifications, tokenization, etc.). ment Services, payment service being based on electronic data The further development of providers are obliged to, within the exchange, equipped with the state- regulatory framework for payment jurisdiction related to payment ac- of-the-art protection. systems in the Republic of Serbia counts, provide clients with: The Instant Payment System was presented by the National (a) services related to opening, (IPS) is the latest payment system Bank of Serbia in the National maintaining and closing an account; under the jurisdiction of the NBS, Strategy for 2020-2024, which, (b) services enabling cash to which started operating in October among other things, provides for be paid into a payment account; 2018, that enables the following: the transposition of the Payment (c) services enabling cash to • Availability of funds transfer in Services Directive II (PSD2) into be sent from a payment account at the 24x7x365 mode, up to the domestic legislation. This will a payment service provider's office, determined maximum amount; encourage open banking, by ATMs and other similar devices, • Immediate, or almost instan- improving the authentication during or outside business hours; taneous execution of transac- mechanism, encouraging the (d) payment transaction ex- tions and availability of funds provision of payment initiator/ ecution services by transfer of to the payee, without the pos- aggregator services and improving authorization, at terminals, bank sibility of revocation (debiting/ access to payment accounts. counters, on internet and mobile crediting of the payer's/payee's The Association of Serbian platforms, including standing orders, account is done in real-time, Banks holds a significant place in (e) debit payment transaction and interbank settlement can the implementation of the Nation- services at terminals, bank be done subsequently); al Strategy and will be actively in- counters, on internet and mobile • Internet and mobile payments volved in the development of new platforms (direct debit); executed directly from the services, based on the application (f) payment transaction current account (not only via of these legal solutions, in accor- execution services using payment card). dance with the PSD2 initiative, cards, including online payments; such as: API (Application of Pro- (g) payment transaction The key features of payment gramming Interfaces), the open execution services with an almost innovations are that billing is and interoperable interfaces for instantaneous transfer of funds integrated, based on the use of communication between applica- between the payer and the recipient mobile applications for ordering, tions. The standardization of the of the funds (instant payments). payment, and integrated shopping. API interface with the level of in- The ASB Cheque Clearing They are easy to use, as they allow teroperability according to the A2A Payment System dates back to one-touch payment, through a principle (Account to Account) into end-2004 and was so revolutionary single connection (e.g. wireless the Unified Payment Interface (UPI) at the time that the Association connections, NFC). Most innovative for communication between banks of Serbian Banks received the payment solutions are not limited and payment initiators/aggregators prestigious European Technology to one type of payment, allowing enables the realization of payments Award in 2005 for this system, in users to manage and use different directly from the payer’s account.

18 Bankieri October 2020 www.aab.al SPECIAL Pandemic, public debt and the economy

The increase of public debt, during 2020, has been inevitable and, at the same time, quite necessary, not only for Albania, but also for countries with much more advanced economies, which had not known such debt levels, since World War II.

a two-year time frame, thus omies, the survival of business- enabling the reduction of public es and employees, which were debt at 66% of GDP, by end- under lockdown, due to the fight 2019. The level of public debt, against the virus spread, was in relation to GDP, continued to quite necessary. follow such trajectory, until the first quarter of 2020, whereas it What about the situation of is projected to increase during public debt in Albania? the year. The increase of public Given budgetary needs for debt, during 2020, has been increased funding, caused inevitable and, at the same time, by the COVID-19 pandemic quite necessary, not only for and earthquake, as well as a Albania, but also for countries declining GDP forecast, this with much more advanced ratio is projected to increase to Interview with economies, which had not known approx. 80.5%, by end-2020. In Mrs. Anila DENAJ such debt levels, sinceBorxh iWorld Publik %a t ëmacro-fiscal PBB framework, in Minister War75.0 II. the next 5 years, it is projected MINISTRY OF FINANCE & ECONOMY Despite the economic con- to return to the downward 72.7 t the beginning of the in- traction70.0 during 2020, we 72do.0 ex- trajectory,72.4 aiming at a return 70.4 terview I will refer two very pect the public debt will return below 70%70 .of2 GDP, by 2025. It important assessments to65.0 a downward trajectory, start- is worth noting that67.7 Albania has A ing by 2021. This increase in debt not encountered difficulties66.3 in by international credit rating level has been viewed with skep- meeting its borrowing needs, institutions. First, Standard & 62.1 ticism60.0 and alarm, both by busi- as both domestic market Poor's B+/Sustainable/B (Jan- 59.4 uary 2020) and second, Moody's nesses and politicians around demand and Eurobond issuance 55.0 B1/Sustainable (August 2020), the world, but not from the in the international market, rated government reforms, fis- economists. Most economists in immediately after the economy’s the50.0 world think that increasing lockdown, not only managed to cal consolidation work and fi- 2011 2012 2013 2014 2015 2016 2017 2018 2019 nancial balance over the years, debt to support countries’ econ- meet the needs, but it ensured even during a very difficult year for the Albanian state’s finance, Public Debt to GDP (%) which was hit successively by 75.0 November 2019 earthquake and 72.7 Covid-19 pandemic. 70.0 72.0 72.4 The Albanian government 70.4 70.2 67.7 has set as priority the fiscal 65.0 66.3 consolidation and debt reduction. In this regard, starting from 60.0 62.1 2014, numerous initiatives and 59.4 55.0 activities have been undertaken to enable fiscal consolidation 50.0 of public finances, the effects 2011 2012 2013 2014 2015 2016 2017 2018 2019 of which were reflected within

October 2020 Bankieri 19 Kosto mesatare e borxhit shtetëror

10.0% 8.86% 9.0% 7.97% 8.0% 7.48% 6.72% 7.0% 6.21% 5.68% 6.0% 5.36% 5.38% 5.31% 4.93% 5.0% 4.37% 4.33% 4.18% 4.03% 3.95% 3.84% 3.67% 4.0% 3.35% 3.29% 3.33% 3.22% 3.01% 3.0%

2.0% 2.42% 2.37% 2.47% 2.25% 2.33% 2.34% 2.24% 2.15% 2.23% 2.14% 2.28% 1.0%

0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-P Borxhi i Jashtëm Shtetëror Borxhi i Brendshëm Shtetëror Borxhi Shtetëror

liquidity, in line with strategic GovernmentGovernment DebtDebt AverageAverage CCostost objectives for improving debt 10.0% 8.86% structure, has increased the 9.0% possibility of private sector 7.97% 8.0% 7.48% financing by the banking sector, 6.72% as well as reduced the pressure ROOND7.0% 6.21% 20102020 5.68% on interest rates, in the domestic 6.0% 5.36% 5.38% 5.31% 4.93% market. 5.0% 4.37% 4.03% 4.33% 4.18% 3.95% 3.84% 3.67% 4.0% 3.35% 3.29% 3.33% The high demand for Eurobond, 800 3.22% 3.01% 8.000 3.0% 7.625 with a subscription/coverage 2.0% 700 2.47% ratio of 4.3, shows the 7.000market 2.25% 2.33% 2.34%7.5002. 24% 2.15% 2.42% 2.23% 2.14% 2.37% 2.28% 1.0% 5.875 interest (international investors) 600 6.000 0.0% for the instrument, as well as

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-P being an indicator650 in ensuring 5.750 500Extern a l Governmental Debt Internal Governmental Debt Governmental Debt financing at a lower rate. 5.000 This demand reiterates,4.4 above all, them with 400 the same cost, as that creasing concentration of long-500 3.550 the confidence3.625 in financial4.000 before the pandemic. term debt450 within the portfolio, statements of the Albanian state 3.500 The trend300 of demand has been debt costs continue to be a low and the reforms3.500 initiated 3.000 by the heading towards long-term se- levels, reflecting an improve- Government. Vlera në mn Euro curities, 200 enabling the300 govern- ment in the ratio between 2.3cost 2.000 ment to accomplish borrowing, and risks.1.7 Domestic borrowing is projected in line 100with its strategic objec- In recent years, the sovereign to increase and generally, 1.000 in lineNorma në % / Raportinë herë tives. In June 2020, the market debt portfolio in foreign with the objectives for reducing - - demand, in relation to borrowing currency has tended to diversify risks in terms of creating needs reached 2010/a 1.79 5 vjeçarsubscrip- in2015/ terms 5 vjeçar of reducing 2018/the weight 7 vjeçar benchmarks,2020/ 7 vjeçarit has continued tion ratio, a ratioVlera deemed asNorma of eEuro Interesit currency (Yield) and increasingKuponi to consolidateRaporti the i mbulimit number of satisfactory by Government. De- the weight of other currencies. government securities’ auctions, spite the increase in debt stock, The issuance of Eurobond on by reducing the issuance in absolute terms, and the in- June 16th, 2020 has increased frequency for new securities and

EUROBOND (2010-2020)

800.00 7.625 8.00 700.00 7.5 7.00 5.875 600.00 6.00

500.00 5.75 650 5.00 4.4

400.00 500 3.55 3.625 4.00

300.00 450 3.5 3.5 3.00 mln EUR

200.00 2.00 ratio Cover 300 2.3 100.00 1.7 1.00

0.00 1 0.00 2010 / 5Y 2015 / 5Y 2018 / 7Y 2020 / 7Y Amount Yield Coupon Cover ratio 80 80 5 60 60 27 5 8 22 15 40 40 22 22 15 10 20 20 42 32 27 25 30 0 0 2016 2017 2018 2019 2020 T-Bill T-Bond Re-opening www.aab.al

80 5

60 27 5 8 15 22 22 40 22 15 10 20 42 32 30 27 25

0Borxhi Afatshkurtër vs Borxhit Afatgjatë në Portofolin e Borxhit Publik 2016 2017 2018 2019 2020

70.00% T-Bill T-Bond Re-opening 63.52% using treasury reopenings of • Interest rate55.59% risk is reduced. stable and strong (economic) 60.00% previously issued securities. growth. 50.00% In the medium term, long-term According to estimates, the No. of auctions41.81% by issuing in- instruments will continue to Albanian economy is expected to strument make the major share in the experience a decline of 4.5-5.0% 40.00% 34.55% The exposure towards ex- portfolio. of GDP, in 2020. Inflation reached 24.40% change30.00% rate risk has been kept 1.9%, compared to 1.1% at the end under control, as the stock of How did the pandemic affect the of 2019. Inflation still remains17.53% government20.00% debt in foreign cur- country's economy? within acceptable limits, given rency continues23.64% to be signifi- Protecting the lives of citizens the Bank of Albania's target of 20.01% 18.96% cantly10.00% below the strategic and and strengthen the public health 3%. debt sustainability2010 threshold.2011 2012 system2013 remains2014 quite2015 important,2016 2017The 2018unemployment2019 Q2-2020 rate In Q2 2020, the structure of but at the same time, the reached 12% in June 2020, public debt has been improved, economic needs generated by versus 11.4% at the end of 2019. Afatshkurtër Afatmesëm Afatgjatë by increasing its sustainability: two consecutive shocks must be During this period, the number of • The risk of refinancing is addressed, as well as continuing suspended, closed or reopened reduced, with reforms that guarantee a businesses has fluctuated, Short term debt vs Long term debt in the public debt portfolio Short term debt vs Long term debt in the public debt portfolio 70.00% 63.52% 55.59% 60.00%

50.00% 41.81%

40.00% 34.55% 24.40% 30.00% 17.53% 20.00% 23.64% 20.01% 18.96% 10.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2-2020

Short-Term Mid-Term Long-Term

October 2020 Bankieri 21 www.aab.al

22 Bankieri October 2020 www.aab.al clearly showing a kind of informality, informal workers dressing the consequences uncertainty about the future. and businesses remain out of of earthquakes, which is ex- The same situation displays humanitarian aid. pected to give a significant the number of employees who boost to the construction quit work and are re-employed What about the economic sector, as well as employ- again. It is worth noting that such recovery? ment growth. The creation indicators are still at the stage On May 27th, 2020, the of new urban areas, with of a short-term analysis and European Union approved the the most modern standards, that businesses themselves are "Next Generation EU recovery will give us the opportuni- assessing the everyday impact, plan" with a budget of EUR 2 ty to introduce the latest manifested by the pandemic. trillion, in order to revive the technologies, in the field of However, we have consistently economy in EU member states. transport, energy efficiency, seen positive signals from While it was initially thought that etc. various sectors. the economic downturn would be 2. Important projects in the With financial support pack- at 7.4%, it is now expected to be field of renewable energy, ages, the Albanian government, at least 8.3% in EU. This unusual by increasingly focusing on as in other economies around and unprecedented situation has solar energy (e.g. the Kar- the world, aimed to provide im- often made predictions quite avasta Photovoltaic Park), mediate support and provide impossible. In presenting the where we still have a great necessary consumption for the plan, the European Commission untapped potential; import- most individuals in need. About President Ursula von der Leyen ant infrastructure projects. 250 thousand people benefit- said: “The recovery plan turns 3. Stimulating business cli- ed from direct payments, with the immense challenge we face mate. In addition to easing Packages 1 and 2. State guar- into an opportunity, not only by the fiscal burden for 91% of antees offered to businesses, supporting the recovery but businesses registered in Al- aim to support them in their also by investing in our future: bania, and by believing that short-term plans, until the sit- the European Green Deal and it can be a good driver for uation becomes clearer. While digitalization will boost jobs increasing their number, as deadlines have not yet expired, and growth, the resilience of well as self-employment, there are over 600 business- our societies and the health of the focus will also be on me- es that have benefited from the our environment.” It is clear dium-term fiscal policies, two guarantees offered, about that environment protection and for a medium-term consoli- ALL 13 billion are approved, by digitalization of the economy are dation. end-August. the two key directions, through 4. Strengthening all structures In July 2020, the Government which the economic recovery in of vocational education and took several additional mea- EU countries will go through. training, to prepare skilled sures, which focused on small In addition to participating workers, responding to the business, by raising the VAT in European initiatives and new needs of labor market. threshold for businesses, with European integration process, 5. Promoting innovation, cre- a turnover of over ALL 10 mil- the Government has drafted its ating tech hubs, regional lion and waiving profit tax for all plan for economic recovery, and funds to support innovation, businesses subject to an annual we believe that it will give quick as well as strengthening turnover of up to ALL 14 million, results in 2021, when our economy vocational education, in the until 2029. Employment promo- is projected to grow by an average field of ICT. tion packages were launched in of 4.5% each year, during the next September and there is work in three years. Accomplishing all these initia- process for launching business Some of the initiatives that tives will definitely require co- support policies. will help us recover from the operation and enthusiasm from A common concern of effects of Covid-19, are as all other market players, such developing countries remains follows: as: banks, businesses, and every the fact that, due to high 1. Reconstruction plan, ad- citizen of this country.

October 2020 Bankieri 23 www.aab.al INTERVIEW UNION BANK - dedicated to automatization and modernization of banking services

We aim at making customer service even more personalized in the future. This will bring a strategic change, which will be reflected in the change of the bank's organizational processes.

of staff and customers, the focus cannot change the need that others on addressing personal concerns expect from you and the personal of employees, staying by them and responsibility. offering maximum support, as well However, despite the overall as positive messages, as this is not impact, the bank managed to be an event that has brought about successful in coping with everyday a pre-determined change for the challenges, since March, by being banking system; it is a transitory at work and operational for all cus- obstacle, which has forced us to tomers. We kept growing in all indi- adapt, find the right direction and cators, also ensuring profitability, advancing on the pathway. supporting with additional funding The pandemic happened during the clients affected by the pandem- the second week of taking office ic, to guarantee stronger founda- and that was definitely a challenge tions for an increased stability in the Flutura VEIPI for me. Familiarity with the future, despite the existing uncer- Chief Executive Officer institution and roles of everyone, in tainty. Everything mentioned above UNION BANK has been possible thanks to the support of the bank staff and close associates, who have been the most You have been recently appointed We are always looking to improve efficient source of information. CEO of Union Bank and faced them and in addition to the latest The trust of customers in the the COVID-19 pandemic almost improvement of e-banking and bank and the trust of the staff in me, that I can lead them, even in such immediately afterwards. How mobile banking platform, we also challenging is such position under challenges, is the power that every current conditions and along the have a number of projects, related manager possesses; personally "new normal", within the Albanian to the bank’s system, which will speaking, its the greatest strength banking sector and financial serve and will support business and energy in such situation. system? plans, as well as help automate My journey in Union Bank started Beyond the challenge of COVID-19 in 2016, as a member of Board and modernize a large part of the pandemic, what are some key of Directors of the bank. During bank's operations, at Head Office priorities and objectives, Union these years, I have been part of and branch network. Bank aims to achieve under your the progress and achievements of management? Union Bank, which in recent years Union Bank, in recent years, have been quite positive. Upon any change, take their time, and in has maintained a high double-digit the appointment at the position of the situation, we found ourselves, growth rate, and during the first 7 Chief Executive Officer, challenges there was no time for natural months of 2020, was ranked among showed up very quickly, where the adjustment. A manager has the banks with the highest results, most important was and continues primary responsibility to make despite the unfavorable business to be managing the pandemic decisions and guide staff towards situation, created by the pandemic. situation and ensuring the continuity the future, especially in moments of We have witnessed once again our of the bank's activity. uncertainty, where more guidance resilience and commitment as a Top priority under current con- is required, and no matter how long bank to carry on with seriousness ditions for me has been the safety you have been in this position, it and persistence our mission, in

24 Bankieri October 2020 www.aab.al

providing quality and efficient is the approach towards online Commercial Bank, but it was also banking products and services to payments, which are growing largely due to the continued organic our customers. We are aware that incessantly and the high number of growth of Union Bank, itself. Based this will not be easy, as the impact customers being served through on financial data, Union Bank also of the pandemic will have effects on digital channels. The situation achieved the highest historical economy and the performance of created by COVID-19 highlighted profit, with almost ALL 800 million our customers. Although it’s difficult such need more and turned it net profit. With such figure, Union to make accurate predictions, we into a stimulus, which educated, Bank secured a Return on Equity of continue to look positively and to some extent, even the most 17.71%, thus being the second most commit ourselves to see forward hesitating clients. These platforms profitable bank in Albania, for the and take steps to be well-prepared are an added value in customer past year. at dealing with the impact of such time management; they offer more The finalization of International situation. service opportunities, as s/he is Commercial Bank (formerly ICB) ac- So, it is inevitable that the served almost without time limits quisition brought an increase in as- focus this year continues to be and from wherever the customer sets, which significantly contributed management of the pandemic cost, is located. They also produce to the increase of the size of Union significantly expressed in the growth profitability in the structure of Bank, after the merger between two of non-performing loan portfolio, client’s bank costs. Surely, human banks. Currently, Union Bank has a with an impact on credit growth, contact is important, but its value balanced asset structure, between but also in liquidity, given the lack of is now focused on counseling, exposure to the private and public tourism in the country, as compared information complement for the sectors. to levels of previous years, and client to make the right and informed Regarding products and ser- the absence of migrants during choices. vices, we are always looking to im- summer, as well as the reduction We aim to build a bank that is prove them and in addition to the of mass consumption. However, attractive to younger generation, or latest improvement of e-banking managing such situation has been the generation Gen-Z2 , who have and mobile banking platform, we carried out in tandem with and in different behaviors, different from also have a number of projects, re- line with the clear vision of Union their parents, who today form the lated to the bank’s system, which Bank positioning in the market, as a key customer base of the banking will serve and will support business bank with quality service and focus system, but who are a global plans, as well as help automate and on customers, by creating a long- generation that differ from each modernize a large part of the bank's term relationship with them. We aim other quite slightly in behavior, operations, at Head Office and at making customer service even regardless where they live. branch network. more personalized in the future. This In terms of standard banking will bring a strategic change, which How do you assess the position of products, we aim to maintain our will be reflected in the change of the Union Bank within the Albanian stable parameters and continue to bank's organizational processes. banking sector and within the fi- grow in lending, with a particular Current situation, but even nancial system, regarding banking focus on individuals and SME more, the future, have brought products and services? businesses. I emphasize that, at the the challenge of digitalization at As per above mentioned. Union same time, the bank will regularly the doors of the banking system. Bank has scored a very positive review and monitor all exposures Although a small country with an performance in recent years, and risks, trying to maintain a good economy where cash transactions which has positioned it well within quality of loan portfolio. The current remain strong and without banking system. During 2019, the structure of funds will also be noticeable changes over the years2, bank recorded one of the best closely monitored, compared to the there will be increasingly efforts in years in its 15-year history. The products offered by the bank, which channeling them into the banking growth certainly came thanks to form the basis for the cost structure system, where the most obvious the acquisition of the International of funds.

1 Money outside banking sysetm is approx. 40% relative to M2, based on Bank of Albania’s source: www.bankofalbania.org/statistikamonetaredhefinanciare/ 2 Generation born during the period of 1996-2015.

October 2020 Bankieri 25 www.aab.al BANKING SYSTEM Banks - a indispensable reality for the economy and society

Banks not only continued with their contribution to society and the economy, by playing the role of financial intermediaries, but have provided again a very important element during such aggravated situation: the country’s financial resilience and stability.

businesses. Although they are the financial stability and soundness. well-organized, apply the advanced This is why banks do not put principles of corporate governance, profit, as their primary objective, are controlled and supervised by a under such situation; the actual specialized institution, are regulated profit would be illusory, short-term, by a specific legal framework - all whereas overcoming the situation of these allow for better shock and resuming economic life at absorption, but they are there, facing the fullest possible, would be the an increased risk. This is so, because guarantee for success and stability. banks do not think for themselves, Because the situation it perceived only. Banks cannot survive if the in such way and is highly given such economy collapses, if the economic importance, banks did not cease slump wrecks businesses and financing and relaxing solutions, individuals. In addition to the shocks, for business and individuals, during Dr. Spiro BRUMBULLI like any other business gets, in terms this period. The two loan payment Secretary General of employee protection measures holidays, which were offered to ALBANIAN ASSOCIATION OF BANKS, AAB borrowers by choice (recalculation of installment size within the same maturity, or extending the he COVID-19 pandemic had a Banks cannot survive if the maturity for as many months as the loan holiday), according to an multidimensional effect: health, economy collapses, if the psychological, economic, AAB assessment, have boosted T economic slump wrecks social, with significant negative the liquidity in the market with consequences, whereas their time businesses and individuals. In approx. EUR 110 million (over ALL span cannot be accurately realized. addition to the shocks, like any 13 billion). Second quarter figures show credit growth, albeit under COVID-19 put to the test every other business gets, in terms of sector, every kind of resilience, every very difficult short-term forecasting system. More or less, the situation is employee protection measures and reliability. By end-June, credit aggravated. and its own business logistics, to economy reached ALL 591 billion, The financial sector cannot banks need to think about compared to ALL 576 billion, at the end of 2019. escape such situation. He crawls the performance of their own into this COVID-19 tsunami, along These data show that banks do not with the whole economy. Finance customers. care to save themselves, or solving and production, services and their problems, away from what the consumption are bound together economy is suffering. Banks not only here. The bond is that strong, so and its own business logistics, banks continued with their contribution to that the fall of one attracts the other. need to think about the performance society and the economy, by playing The chain must be kept unshackled, of their own customers. The the role of financial intermediaries, otherwise the consequences will be performance of borrowing clients but have provided again a very even more devastating and painful. is essential, regarding the effect on important element during such Banks could not be in a more deposits, as financing funds. Deposit aggravated situation: the country’s relaxed situation than other protection and security is the basis of financial resilience and stability. The

26 Bankieri October 2020 www.aab.al provision of services and products, time banks were criticized for queues this does not decrease the value online access to these services during the pandemic), but because of the sector. Coexistence and and products, acceptance of loan banks did not want people to go out knowing how to intervene, by not applications and their handling, and break the established lockdown compromising on the standard, is stability of deposits – all these are rules, during the pandemic. Stay a prominent skill, at least for the positive facts that banks do not "cry" at home and use the digital bank! - banking industry, so far. Beyond over their plight, but they are in the that was the motto of banks. Banks kindly and constructive criticism, same boat with the whole economy not only provide digital services but but also for any case that probably and anyone contributes according to have also brought new and improved gets more attention, especially on its role and weight. technological products. Significant social networks, banks have always The pandemic, due to strong changes that occur in developed known to react with rationality lockdown measures, highlighted countries, are also implemented and professionalism, without ever the need to use and get familiarized by our banking industry, within compromising on banking principles with online services – provided acceptable timeframes. Finally, the and advanced standards of banking by the private and public sector. introduction of contactless card was activity. If we do not respond to Banks have been offering online carried out within the timeframes every criticizing attack, it does not banking for years, via computer dictated by the companies that mean that we do not read and keep and mobile. A lot has been invested provide electronic transfer of our position, therefore, whoever in this infrastructure and a lot of funds. Student card, prepaid card, YOU may be (politician, blogger, marketing has been conducted for online limits – these are another journalist, analyst, businessman, its learning, familiarization and use - set of products offered, albeit not ordinary citizen, etc.), YOU cannot accompanied by a special care about uniformly, by all banks. The claim attack banks, and do that just how to defend against cyberattacks. and demand that the sector must because it suits you, or with the ease Under lockdown conditions, people, move faster and with more creativity of talking about politics, or sports. more than a hobby, were forced in this regard is welcomed and The financial sector is a typical to deal with online services. The appreciated, but without forgetting representation of the expression: obligation to perform many services market demand for them. We are "one plus one makes two"! through e-albania platform, helped still at a low level of debit card use as Finally, I would like to close in developing computer skills, thus a payment card; it is mainly used to with a quote from the speech of Mr. overcoming fear and ensuring a withdraw salaries at ATMs. Gent Sejko, BoA’s Governor, on the safer access to technology. However, Banks, as the most avantgarde monetary policy decision, on August using e-albania is not like using sector of our economy and society, 5th, 2020: a bank account, where a mistake is a widely accepted reality, not only "The Supervisory Council deems can cost you dearly. There is still a at academic and institutional level, that the banking sector has provided need for more education and much but also at the popular one (various a significant contribution to mitigate more use of digital services, by bank surveys show the banking industry shocks. Credit to the private sector customers. So, we are living a time as the country’s most reliable continued to grow, in the second when both public and private services industry). We have never claimed quarter, peaking at 7% in June and need more technology use. Welcome that it is a perfect sector, as we supporting Albanian businesses and to this rendez vous! Because we always underline the fact that this households with the liquidity needed (banks) were almost the only ones industry conducts its activity with to cope with the crisis. Also, this who, for years, were promoting the people from this society, with the sector has absorbed a part of the use of cashless online services and same institutions as those for all financial cost of the shock, by further card payments. other businesses, with the culture easing the burden to the private Banks enabled their customers to that prevails in the market, with sector. The Supervisory Council notes use digital banking extensively, while financial literacy of the population, that the persistence of such positive protecting themselves, in the face of still at a low level, within the business approach by the banking sector pandemic lockdown and not limiting climate that features the Albanian toward credit, which is also favored their vital services. Moreover, they economy. So, it is impossible not to by sovereign guarantee instruments, lifted commissions for a period of be affected by these phenomena, will be a necessary precondition for time, not because no one showed for better or worse, even finding the recovery of the economy in the up to the bank (it cannot be said, in a unacceptable cases. However, future."

October 2020 Bankieri 27 www.aab.al BANKING SYSTEM Beyond loan holiday/moratorium Issues to be addressed and managed by the banking sector

In recent months, banks have adapted to the new dynamics, while the unique characteristics of the recession have forced them to move faster, by making analysis in real time, in terms of loan decision-making.

economic model, based heavily on following a U- form; or could it be small businesses, trade and ser- more like an L-shape, where the vices, high dependence on tour- recovery will take many years, or ism, declining remittances and even decades. foreign direct investments, the Banks offered to borrowing consequences of earthquake and clients the choice of loan high public debt, which left quite installment re-scheduling, or loan little room for government fiscal repayment plan modifications, intervention to support business- to support their recovery. So far, es and the private sector. loan holiday, fiscal incentives The keyword now is how to and government support have stimulate economic recovery helped to e certain degree, but and the strategies, policies and they are not enough. The loan fiscal incentives, which need to holiday/moratorium has ended, Admira LLAZARI be applied in this regard. Even and customers have started Head of Credit Risk Department globally, there is much debate as making their loan payments, BANKA KOMBËTARE TREGTARE to whether the economic recovery in September. Throughout this period, we are committed to support all claims, assessing the he whole world is experi- impact of the situation on (client) encing an unprecedented In an economy that continues to solvency and offering adaptive T situation, where the primary experience heavy pressure on solutions, in order to enable the emergency in saving every human already limited fiscal capacity to recovery of activities for our life, through restrictive measures borrowing clients. Despite the address the urgent needs of public of mass lockdown and social dis- comprehensive complexity of the tancing, was quickly followed by and social health, the insecurity, whole process, keeping in mind the economic collapse. Undoubtedly, the inability of job recovery and uncertainty and unpredictability Covid-19 is considered one of the a slowing economic pace will of the pandemic’s duration, as most serious crises that humanity well as whether there will be a continue to transmit respective has experienced, in recent centu- wave of recovery, the solutions ries. effects into loan installments’ offered have been on individual Globally, the economic reces- repayment. basis, tailored according to each sion is projected to exceed 5%, a client's situation and expectations figure much worse than the conse- for recovery. Also, we applied a quences of the Great Depression more specific approach to those of 1929-1933, or the financial cri- will have a V-shape, indicating a clients who showed delays, even sis of 2008. Meanwhile, the econ- short-term economic downturn before the pandemic. Given the omy’s decline for Albania is pro- with a rapid return to previous portfolio distribution, approx. jected at 9%, which is among the levels of production, or whether 85% of requests were submitted highest in the region, due to the the recovery will take longer, by individuals, but in volumes,

28 Bankieri October 2020 www.aab.al it is businesses that makes the do not have any clue how long travel, transport, tourism and major share. Despite the fact that this pandemic will last, BKT will hotels, bars and restaurants, almost all these requirements continue to do its best, to help, have been severely challenged. have already been addressed and among other things, support Therefore, to assess the new loan applied in the banking system, businesses’ revival and carefully payback capacity & capability, in the challenges, we must live monitor the progress of its the context of such crisis, in line up to, remain numerous. The borrowers, but also to obtain, as with the severity of the impact in moratorium itself provided soon as possible, any necessary different sectors and sub-sectors liquidity for borrowers, and again measures to prevent the current of the economy, each borrower is the recovery of businesses and challenge from being transformed assessed individually, applying individuals remains a challenge, into long-term financial difficulties and combining different loan yet. Transport, tourism, bar and and insolvency for them. risk mitigation techniques and restaurant service chain, contract The new reality has also schemes. In this context, the bank manufacturing and retail sectors, reformatted the way of doing has also updated its appetite for which employ a significant number the banking business, as well credit risk and has reoriented of active population, continue to as accelerated the pace of lending policies, by making the be among the most severely hit digital transformation. From criteria more prudent, but always sectors and, consequently, their the perspective of the banking not forgetting its much-needed recovery will be the most difficult. system, the COVID-19 crisis has contribution to the revitalization Given the current situation, a shown specific effects on loan of economy. declining economic activity, rising risk management and mitigation. The most important lesson unemployment, high levels of In recent months, banks have from the COVID-19 pandemic is the informality, fragile finances, rising adapted to the new dynamics, importance of working together on public debt and lack of investment, while the unique characteristics of problems that affect all humanity. the performance of our economy the recession have forced them to Constrained solutions, in times proves that recovery will be a move faster, by making analysis in of crisis, can reshape the world difficult and slow process. real time, in terms of loan decision- for decades to come. As stated In an economy that continues making. Fortunately, the banking above, this crisis has accelerated to experience heavy pressure on sector is well-capitalized and is the pace of digital transformation, already limited fiscal capacity to liquid, but falling demand for loans which is already in an irreversible address the urgent needs of public is worrisome, which means that process, and the consumer and social health, the insecurity, the market is panicking and there approach, influenced by our new the inability of job recovery and is a decline in consumption. In this lifestyle, is being reshaped in a slowing economic pace will reality, the creditworthiness or this regard. Now, also as per continue to transmit respective solvency of customers varies, to oriented, more transactions have effects into loan installments’ a higher degree, by sectors and started and are executed through repayment. A new wave of problem subsectors, when compared to online channels and traditional loan exposures may begin and previous recessions. Industries, banking will be reduced, perhaps it needs to be addressed. Loan such as: food distributors, are serving as a possible catalyst for portfolio’ recovery requires close doing better, also coping with innovative banking developments, monitoring and fostering stronger a growing consumer demand. so necessary and indispensable customer relationships. Since we Meanwhile, sectors, such as: for our country.

October 2020 Bankieri 29 www.aab.al Më pranë risive teknologjike

Na vizitoni në web-in e ri www.tiranabank.al

30 Bankieri October 2020 www.aab.al EXPERTS'S FORUM The new legislation on capital market - the right investment for developing and deepening the Albanian financial system

The partial application of MIFID II in Albania is not only convenient, but also helps in developing this market, by setting higher standards, in order to increase investor confidence in the market.

is in its early stages? not invest in investment products/ The understanding of financial financial instruments, offered by the and capital markets as a whole is capital market. closely related to the importance In this regard, a partial applica- of investor confidence in financial tion of MIFID II in Albania is not only markets, a very important factor convenient, but also helps in devel- for the development of a new capital oping this market, by setting higher market, as in case of Albania. standards, in order to increase in- Confidence is a factor, which is vestor confidence in the market. The quite difficult to build up. Market new law, which is based on investor abuses, lack of transparency, as protection, categorizes investors well as market failures in general, into eligible/acceptable parties, pro- fessional investors, non-profession- Niko KOTONIKA al investors, and qualified investors. Head of Capital and Funds Market The purpose of such division is pri- Supervision Department The new law on the capital market marily to ensure that non-profes- ALBANIAN FINANCIAL SUPERVISORY is a precondition and a driving sional investors receive the appro- AUTHORITY, AFSA priate level of protection, regarding factor for a transparent, well- their ability and willingness to take regulated and reliable capital risks, as well as to set specific re- he new Law No.62/2020 "On market, however, the development quirements, regarding the transpar- Capital Markets", which entered of this market will also depend on ency, brokerage firms must provide, st Tinto force on September 1 , a number of other factors, such when offering financial instruments 2020, aims at contributing to the as: expanding the investor base, to these investors. The law pre- deepening of the financial sector, scribes requirements for all bro- improving market infrastructure, seeking the development of the kerage firms to conduct the investor capital market as a whole, but at the the range of financial instruments, suitability test, as well as providing same time, linking such development matching demand and supply sanctions for all firms that do not with transparency, market integrity for securities, investors and conduct such test. Through the suit- and investor protection. The law is issuers’ financial education, or ability test, the brokerage company partially harmonized with a series encouraging companies to be ensures the right information about of European Union directives, investors’ knowledge or experience listed on stock exchange, through mainly the Markets in Financial with financial markets, their finan- Instruments Directive II (MIFID II), a public offering. cial situation, the ability to weather which standardizes the behavior losses, as well as their investment of actors, participating in capital objectives and risk tolerance. In this markets. way, the investment is carried out in affect the decline of confidence. accordance with the investor’s pro- How appropriate is the MIFID Should the confidence be low, then file. application for a country like it would not be possible to create A very important element for Albania, where the capital market capital markets, as investors would proper functioning of the capital

October 2020 Bankieri 31 www.aab.al market is both corporate governance In order to promote the The public offering of securities’ and the requirements for a quality development of the capital market, is regulated through a special audit of listed companies. The the new Law "On Capital Markets" chapter, which stipulates, among recent Wirecard scandal proved provides special requirements for other things, the obligation to how important the audit quality is, licensing of banks, when the latter publish the Prospectus, as the most for listed companies, which are provide investment services, aiming important document, which serves considered of high public interest. at a less bureaucratic process. The at informing the investor about Thus, the new law on the capital financial market in Albania is chiefly characteristics of the offer, as well market sets specific criteria, dominated by the banking sector, as relevant risks accompanying regarding the transparency of which has shown so far high levels such offer, aiming at maximum listed companies, as well as special of professional responsibility. Banks transparency with investor, so that requirements for disclosure and play an important role in providing the latter makes a well-informed publishing information. The law investment services, not only in decision when deciding to invest also provides criteria, regarding the Albania, but in almost all Southeast in capital market products. The auditors of financial statements of European countries. Seen from Offering Memorandum is another these companies. another perspective, today, when document, similar to the prospectus, The MIFID directive is often crit- we talk about capital markets, we but presented in a more simplified icized for imposing high require- are talking about integrated and way, adapted, mainly for professional ments on corporate governance, as global markets. Investors today investors, or individuals within well as new requirements regarding can trade freely, where they want, a limited number, in order to the organization of brokerage firms, and the harmonization of legislation simplify the issuance process and, indirectly increasing costs for com- with more developed countries at the same time, maintain high panies operating in the market. The helps increasing the investors’ transparency standards. new legislation in the field of capital protection. The law provides The law has conferred the market has been drafted with the aim special requirements regarding Authority sufficient power to ensure of approximating the requirements foreign companies, which may offer its effective enforcement. Thus, for governance and organization of investment services in Albania, by foresees the increase of the Albanian brokerage companies with European establishing a representative office, Financial Authority competencies, in standards, but also adapting to the or through a related agent, but at the terms of conducting administrative current stage, in which the develop- same time, setting requirements for investigations, in order to prevent ment of capital market in Albania is. Albanian brokerage firms, which will market abuse, as well as to impose In order to improve the functioning decide to offer services. sanctions on all entities that violate of capital market in the country, the In addition to the Stock Exchange, legal requirements. new legislation stipulates high stan- as a very important market institution, The new law on the capital market dards in the process of selecting key the new law sets requirements for is a precondition and a driving factor persons and officials, who will play new forms and structures of market for a transparent, well-regulated a key role in managing the activity of organization, such as: multilateral and reliable capital market, however, these companies, as well as a com- trading platform, or organized the development of this market will pletely new model of certification for trading platform. The Authority also depend on a number of other key personnel, in line with European has currently licensed the Albanian factors, such as: expanding the standards, by enabling smaller com- Stock Exchange - ALSE, in which only investor base, improving market panies to delegate certain functions. government securities are currently infrastructure, the range of financial Hence, the aim is to attract and ac- traded. Listing the first companies instruments, matching demand tivate serious brokerage companies with public offering remains a and supply for securities, investors in the capital market, which have very important challenge for the and issuers’ financial education, clear business plans and ideas, and development of the capital market. or encouraging companies to be which also have a qualified staff, AFSA is working with the Ministry listed on stock exchange, through with necessary professional skills of Finance & Economy, through a public offering. All these factors and experience to operate in a mar- a joint working group, to analyze are closely related to the role that ket, in which the participation of ex- the possibility of transforming the main stakeholders in the capital perienced players is a must, to pro- state-owned companies into public market should play in promoting and mote its further development. offering companies. developing this market.

32 Bankieri October 2020 www.aab.al EXPERTS'S FORUM Moving towards a digital-first mindset

At the global level, VISA has launched series of initiatives, aimed at helping businesses to complete digital transformation and motivating consumers around the world to shop at local businesses.

In April, over 70% of all VISA during COVID period – up to 60% payments across Europe were compared to previous year. contactless. In many of the largest countries in Europe, the Enabling seamless payment share of VISA transactions that experience to all parties are contactless has increased by With the pandemic serving as a at least 25%, year on year. This catalyst for a transition to digital has helped consumers make payments, VISA's long-standing larger purchases, like groceries, commitment to ensure safer and without making contact smoother payment experience with payment terminals. In for all parties involved and make Albania, number of contactless digital commerce available to transactions shows increasing more individuals, small and Vladimir DJORDJEVIC trend during COVID and in June micro businesses, has become General Manager the number of transactions more important than ever. To VISA FOR SOUTH-EASTERN EUROPE increased 87% comparing to help meet the growing demand March when COVID started. for safe, secure and reliable With shoppers spending digital payments, VISA has greater amount of time in partnered with governments, in their homes and merchants more than 55 countries across he pandemic has resulted in shifting sales to digital arena, the world, to raise contactless one of the greatest economic eCommerce across the world limits, so consumers can tap- contractions in recent T continues to grow. In the UK, to-pay without touching a history, disrupting all aspects active eCommerce credentials terminal, or another person and of our lives. It has changed the increased 16% while spend per feel safer at checkout. In SEE way we work, interact with our active credential increased region, VISA increased the limit families, colleagues, business 3%. On the other corner of on contactless transactions partners and communities. the world, in Brazil, active that do not require to enter PIN With many countries imposing eCommerce credentials have code for confirmation allowing lockdowns, closing borders, risen 11% and spending per consumers to simply tap-to-pay banning gatherings of any kind active credential grew 12%. In using their contactless card. In and sustaining social distancing markets where eCommerce Albania, the limit was increased to stop the spread of the is not as developed, there are to 5.500 lek, which is 22% more corona virus, businesses and examples of dramatic changes in than the previous amount. consumers around the globe adoption. Argentina experienced Additionally, VISA has been have caused a rapid growth in active eCommerce card growth offering the most reliable and use of digital payment solutions of over 100% and Romania secure payment solutions for to satisfy their needs. 70%. In Albania, eCommerce merchants and their consumers, Over the course of pandemic, in domestic purchases was the for over 60 years now. Earlier our records show shoppers main contributor to growth with this year, VISA introduced Visa worldwide were looking for a +500-600% growth rate year on Secure (previously known as safer, more reliable payment year, in April and May. Food and Verified by Visa) to provide experience at the physical grocery is the biggest market increased fraud protection, point-of-sale, more frequently segment in domestic commerce minimize cardholder friction, and opting for a tap-to-pay solution. with the highest growth rate, increase the completion of sales,

October 2020 Bankieri 33 www.aab.al

CHANGE OF HABITS The pandemic forced numerous business representatives and consumers across the world to adopt new behaviours to address the crises they have faced. Wishing to better understand the impact of coronavirus disease and provide meaningful solutions to SMBs, VISA conducted a global Back to Business Study, interviewing 4,500 consumers and 2,000 small business owners in Brazil, Canada, Germany, Hong Kong, Ireland, Singapore, UAE, and the U.S. According to this study, nearly eight-in-10 consumers worldwide (78%) have changed how they pay, in order to reduce contact and more than two-thirds of SMBs (67%) have tried a new approach – whether launching an eCommerce site or changing POS technology – to keep their business on track. Now, more than ever, consumers expect safe and touchless payment experience at the point-of-sale. Nearly half (48%) would not shop at a store that only offers payment methods that require contact with a cashier or shared machine like a card reader. On the other end, small business owners are pivoting to digital-first mindset with more than a quarter (28%) that have tried targeted advertising on social media or sold products or services online (27%). With the new normal shaping what, where and how we buy, Albanians as well are showing greater interest in digital payment solutions. A regional survey conducted within the campaign "In line with the digital future" finds more than 40 percent of respondents in Albania are ready to make contactless transactions, because it brings them numerous benefits. One in 10 interviewed consumers in Albania uses tap-to-pay method and is motivated to get to know this technology even better. About 60% of respondents in Albania purchase goods and services via the Internet, pointing out time and cost effectiveness, security, and convenience as the main reasons for online shopping.

leading to a better experience for COVID-19, are hitting heavily time focused on contactless both merchants and shoppers. small and micro businesses, the payments, striving to motivate Visa Secure uses the latest EMV backbone of the global economy, citizens to become contactless 3-D Secure (3DS) specification, which account for more than card holders and influence on which is the new industry-wide 90 percent of worldwide their use among the existing messaging protocol, developed businesses, contribute to more users. As interest in eCommerce to promote frictionless than half of global employment shopping increased during consumer authentication. It and represent 60 percent of pandemic, in order to educate enables consumers to verify GDP in low-income countries. users on how to shop online, their identity with their issuing At the global level, VISA has protect themselves against data bank or other entity (issuer) when launched series of initiatives, theft, VISA launched several tips making card-not-present (CNP) aimed at helping businesses to and tricks videos. eCommerce/online payments. complete digital transformation As the world is slowly The additional security layer and motivating consumers exiting lockdown, relaxing helps prevent unauthorized CNP around the world to shop at local social distancing measures and transactions and helps protect businesses. reopening for business, VISA merchants from exposure to In Albania, VISA partnered stays committed to helping the CNP fraud. up with banks to support world recover from the economic eCommerce growth, by devastation and adapt to the Navigating the new normal rewarding clients with 5% shift towards digital by applying The extraordinary economic cash back. Another campaign its assets to get everyone back challenges, brought on by was launched this year, this to business.

34 Bankieri October 2020 www.aab.al FINANCIAL AUDITOR Digital Renminbi - a technical inevitability

While physical money is not yet endangered in most of economies of the developed world, the experience in some countries, particularly in Sweden, China, South Korea, Netherlands, and at some extent, in the United Kingdom, shows a world which is using less cash.

central banks’ activity in the future, same time, technology companies, the importance and effectiveness such as: Apple, Ant Financial in China, of payment systems and their Swish in Sweden and M-Pesa in infrastructure, monetary policy Kenia are rapidly changing the game function of the central bank and some for payments through mobile phone. other functions, would be maintained. Facebook also has ambitious plans Moreover, the need for risk-free in this regard, but it immediately money from central bank will remain encountered a resistance wall from strong, due to its ability to reduce policy-making institutions in USA risks in economic transactions. and in many developed countries. Central banks will continue to make It seems that the expression efforts to meet these requirements, "Cash is king" is increasingly losing through improvement of services either the importance or its meaning. and their respective infrastructure, As the technology progresses, Dr. Genti BEQIRI including real-time payment many countries are reviewing these Lecturer systems. The future of central banks developments and how they will EUROPEAN UNIVERSITY OF TIRANA, UET and their digitalization is closely adapt the payment and banking interconnected to the future of system to this new reality. The need governments and countries, where for constant and rapid control makes ompared to the history of they operate, and depends on their this issue even more important. money and commercial banks, ability to identify the ideal way to Since the late 2000s, China Ccentral banks’ history is much use the information and data in the has been trying to accelerate the shorter and permanently influenced economy. internationalization of its currency by the development of modern During the global pandemic - Renminbi - RMB, through countries, economic environment period, central banks have been political measures and financial and technological innovations. Due overburdened. Along with injection interventions, such as: Dim Sum to this fact, the constant novelty in of large sums of money into the Bonds, but also through other forms. technology and globalization itself financial system, they have also Dim Sum Bonds relate to a term used are expected to have significant been involved in “cleaning” large for bonds issued in Chinese RMB impacts on central banks, in the amounts of money. From America and traded in Hong – Kong. These near future. Given that all essential to South Korea, central banks have bonds are attractive for foreign activities of central banks, such as: quarantined and disinfected many investors who wants to buy assets money issuing, running and handling banknotes, potentially contaminated. in RMB currency, but they are under payment systems, the role as lender In this respect, many countries the capital control of China, as it is of last resort and drafting and have applied strong incentivizing an investment in its domestic debt. implementing monetary policy, are policies and financial aid to families Buying and trading them in Hong all based on "creditworthiness" and and businesses. For this reason, – Kong, or Macau, is an "window" “confidence”. governments and banks are left open, to avoid legal restrictions Their history has been, and increasingly interested in a digital within the administrative boundaries the future as well, will be closely currency system. Moreover, the way of People’s Republic of China. related to the efficient frame of how we pay for goods and services, is Such bonds have been attractive confidence building and reflecting changing very quickly. The duopoly of to Southeast Asia capital and new technological and institutional VISA and Master Card payment cards economies, known as ASEAN, as well conditions. Even though digital is constantly increasing their reach, as US capital, such as: McDonald, innovation may affect the approach to in many parts of the world. At the which is well-positioned and spread

October 2020 Bankieri 35 UB ONLINE KRYEJ VEPRIMET BANKARE ME NJË KLIKIM

Paguaj faturat, këstin e kredisë, transfero para, menaxho llogarinë.

unionbank.al 0800 0800 www.aab.al

throughout China. However, these program. Large companies, like: Didi issue whether China can really turn can be seen as a pre-requisite to Chuxing, the largest travel company its digital currency into a reserve the next steps of movement, that in China and Meituan Dianping, the currency, like the US dollar. Chinese government is aiming to giant of food distribution, are among Regarding the issue of privacy, undertake: the positioning of RMB as the candidates to support, on a large the data that will be collected by a premium reserve currency in the scale, the digital RMB, through their central bank, it has two sides. On world, just as USD or EURO. The best enormous platforms. This would give one hand, the data will include a and fast way of doing this would be them a lot of speed in their business. country’s full economic activity in digital money/currency. A thorough piloting of digital real time, as the data will be recorded While physical money is not yet currency is of a large importance for in decentralized, distributed endangered in most of economies of Chinese economy, because financial ledgers (blockchain). Therefore, the developed world, the experience stability is put under a constant the government will have access to in some countries, particularly pressure and question. The pandemic all this, in real time. On the other in Sweden, China, South Korea, further highlighted the weaknesses hand, this will enable the central Netherlands, and at some extent, of the standard/traditional banking bank to do its job more effectively, in the United Kingdom, shows a system. According to FinTech because instead of having a delay world which is using less cash. It is companies in the region, this is a big in economic data, the central bank increasingly likely to happen. This is step towards innovation, because it is is able to monitor all expenditures, why, many analysts have addressed the first time, we will have a currency, transactions, money supply and possible ways of trading the digital designed to act automatically; it has demand, the inflation consequences, currency, ways supported by full functionality and support in this in real time. Moreover, it will be respective central banks. economic period. The national digital able to track where people go in the Due to technological disruptions currency has become, as they say in world, because the Central Bank of in its financial system, China began China: a technical inevitability. It's Digital Currency will be available to to explore the digitalization concept, not about whether they should start the Chinese people wherever and since 2014. A decade ago, physical with this venture; it is an absolute whenever they do business or pay money prevailed; last year, monetary necessity to develop further. This in other countries. In fact, it is some transactions totaled Yuan/RMB 347 really makes sense, because having sort tracking the individual. So, there trillion (US$ 49 trillion), counting for a look at our lives, we understand are big alarming questions that need four out five payment transactions. that we are increasingly living our to be properly considered, when it An official digital currency can lives online ... on internet. Our life comes to privacy and anonymity. help in managing risks stemming is very closely linked to technology, Second, if China wants its from this tremendous volume of while are moving towards a digital currency to freely flow outside transactions, during this transition economy; a digital economy which the borders of the PRC, it has the period. In case of payment systems also includes tokenization. The technological capability to return it failure, or a crisis, such as that of new digital economy needs digital into a reality. This is supported by Covid-19 pandemic, which could money, and many countries have the extraordinary trade flow, which take a longer time to recover, people realized this. It needs representative comes as a result of the initiative: Belt would want money, which will be less (fiat) money, in a digital format. and Road Initiative, but also others in circulation. Otherwise, the economies, especially like these. The US dollar is still the For many years in a row, China the Chinese one, will be under the currency to be exchanged, through has been pursuing its plans to issue threat of Bitcoin, Etherum, or Ripple, which larger transactions flow. So, a digital RMB, so that to become the or other currencies, which have there is a case that the new digital first country in the world offering a the appropriate technology to be currency may become a universal sovereign digital currency. After the integrated easily into the new digital payment instrument for countries piloting phase of digital currency economy. In other words, it is an that are part of trade initiatives with in four Chinese cities: Shenzhen, absolute necessity for the Central China, and then it can rise to the role Suzhou, Chengdu and Xiong'an – Bank of China, like any other central of a reserve currency in the world, in May 2020, the Central Bank of bank, to improve its currency. Two initially for Asian countries, and China - the People's Bank of China, real issues are raised in this story: then for the emerging economies, is now in discussions with private the first one relates to the privacy worldwide. All this remains to be companies, to expand its pilot and the second one relates to the seen and experienced....!

October 2020 Bankieri 37 www.aab.al CSR

• For the second year in a • Supported “Shefqet Ndroqi” row, the bank was one of the Hospital, by donating Echo supporters for the program: Portable hospital equipment. "Hello Life" by World Vision • In the eve of the new school Albania, a social program year 2020-2021, it donated that provides specialized masks and sanitizers to services for 72 disabled some schools in Tirana. children, in the villages of • Supported Vlora Health Librazhd, Përrenjas, Dibra Care Services Operator, by and Bulqiza. covering purchase costs • Provided computers for the of sanitizers, masks and computer labs of six 9-year gloves for employees of the and high schools, in the city institution. of Peshkopi. • Credins Bank, together with • Contributed with the purchase its staff, supported children of many shelves and counters, of "SOS" Village with didactic to support seasonal sellers and school tools. of agricultural, livestock and • Donated computer equipment artistic products, in the city and technological systems of Pogradec. to Kukës Municipality, Vora • Supported the organization Health Center and the Local of the exhibition: "Moments’ Health Care Unit in Tirana. Traces - Dreaming of conti- • Supported Elbasan Health nuity", in collaboration with Care Services Operator, Gallery70. by purchasing materials to improve infrastructure. • Supports I.E.P.D Durrës, S.C.A Fier and the Operator of Health Care Services Tirana, to improve infrastructure and working conditions in • Supported "Different & the institution. Equal" organization – a • Supported the Innovation In- Shelter for Reintegration vestment Fund in organizing of Victims of Trafficking "Agro-Tourism: A Primary and Daily Care Centers for Investment Sector". Credins their children, in Tirana and Shkodra, to improve physical Bank is a key player in sup- facilities. porting farmers across the • Following the efforts to mit- country, by providing bank- igate the situation created ing products and services by Covid-19, the bank has tailored according to their responded to the request of growth and development Selenica Municipality, to do- needs, as well as providing nate 100 food packages to banking consultancy to fur- help families in economic dif- ther promote agri-tourism, ficulties in this municipality, throughout the country. as well as in the administra- • Supported the activity: tive units of Kota and Armen. "Grandmothers' Day". The

38 Bankieri October 2020 www.aab.al

party was held in the city of tition was finalized with three Përmet for 2 days, where winning groups and provided there was a variety of activi- students with the opportunity ties and performers. to become part of the intern- ship program at the bank, and at the same time, the opportu- nity to become part of its staff. • OTP Bank – Albania, in the framework of improving work- ing conditions in government and academic institutions, • On July 3rd, 2020, at the donated computer equipment premises of "Avni Rustemi" and printers for a number of elementary school the bank entities: Tirana Municipality, distributed 100 food packages Devoll Municipality, Durrës for 100 families (parents of Economic and Educational disabled children). Center, Vlora Region Prefec- • The bank responded to the ture and Polytechnic Universi- call of NGOs to help a group ty of Tirana. of families in economic difficulties, with a deceased parent and children are minors with the status of orphans, by distributing food aid for these children. • The bank allocated a fund for renovating the Red Cross headquarters in Vlora. • Raiffeisen Bank joined the • Undertook the awareness efforts of health institutions campaign: "OTP recommends", to cope with Covid-19 to promote domestic tourism. situation in Albania, by • “Live Albanian” – A promo- donating a fund of EUR tional campaign dedicated to 40,000 to help the Ministry of consuming Albanian products, Health & Social Protection. which aims to encourage the At the donation ceremony strengthening of local econo- Mr. Christian Canacaris, CEO my, through the consumption of Raiffeisen Bank - Albania of Albanian products and ser- congratulated the Ministry of vices. Health & Social Protection, • Organized the "Research Pa- and especially all medical per" Competition, with the staff, for the heroic work participation of students from during these difficult days. various Albanian Universi- • Thanks to the support of ties. Focusing on the topic: Raiffeisen Invest it became "COVID-19 impact in Albania – possible to equip "Vrinë" How will banks operate now?", 9-year school in Saranda with Students from various fields a new sports field, equipping offered their ideas for inno- the "Petro Nini Luarasi" vative solutions in the bank- school in Ersekë with a new ing service, through in-depth computer lab, equipping "31 market research. The compe- July” school in Mat with a

October 2020 Bankieri 39 www.aab.al

DEPOZITA 3.2% në Lekë ME AFAT 5 VJEÇAR Fitim i pagueshëm në fund të çdo viti 40 Bankieri October 2020 www.aab.al

new library, equipping the of Tirana Bank, attended the “Bardhyl Pojani” school in inauguration ceremony of the Korça with new computer playground. The inauguration equipment and equipping of the park was accompanied “Kryezi” school with a new by a celebration by the Tirana meeting room. Also, the bank Circus. supported with computer • Equipped with computers equipment and various the regional environmental office equipment: Shkodra agency in the city of Fier. Education Office, Roskovec • Cooperated with Red Cross and Tepelena - Memaliaj and supported the purchase Local Education Office, to of school bags and items help them in their daily work. for children of families in • Raiffeisen Bank, for the 8th financial difficulties. consecutive year, support- ed the ICT Awards, the most important event dedicated to technology and communica- tion. This event was finalized on July 10th, with a gala eve- ning, where the winning priz- es were awarded into several categories. • During the summer touristic • Supported the activity "Chil- season, Union Bank placed at dren change the world", or- the disposal of tourists some ganized by the New Genera- 100 parasols, in one of the tion Center. public beaches of Vlora city. • Supported the 9th Edition of Parasols were available for "Jazz Fest 2020", a genuine use by any tourist or citizen, jazz music festival. free of charge. At the end of the tourist season, these parasols were donated to Vlora Municipality. • Union Bank, in the frame of extending support during the difficult situation created by Covid-19 pandemic, • In cooperation with Pogradec has started a he periodic Municipality contributed with assistance for supplying QSUT placing trash bins near the (“Mother Teresa” Hospital city avenue, under the motto: Center), since August, with "Together for a clean city". batteries for oximeter devices, • Built a playground for used in the treatment of children, in one of the patients with Covid-19. This suburbs of the capital. The project is also related to Union 520 square meter park is Bank customers, who may located in Sauk and was built help increasing the number of according to a joint project donated batteries, where one with Tirana Municipality. battery is donated for every Along with many children, the 4 transactions performed Erion Veliaj , through the “UB Online” and Mr. Dritan Mustafa, CEO e-banking platform.

October 2020 Bankieri 41 www.aab.al NEWS FROM BANKING SECTOR

JCR Eurasia Rating, during period- business and finance: ic review affirmed for Banka Kom- bëtare Tregtrare SHA, a “stable” Business Worldwide: outlook, respectively “AAA (Alb)” • Best CEO in Banking Industry in on Long Term National Credit Rat- Albania ing and with “A-1+ (Alb)” on Short • Most Innovative CEO of the Year Term National Credit Rating, and - Albania its International Long Term FC and LC ratings as “BB+”, thus re- flecting the frontier of the country where the main shareholder is lo- cated, Turkey (BB +), and one notch Finance Central Europe awarded higher than the principal operating Mr. Seyhan Pencabligil, CEO of BT country (Albania is ranked (BB)). and Banka Kombëtare Tregtare, at In the frame of continuing its sus- “International Business” Magazine the event: " Top South East Europe tainable development efforts, BKT Awards: Bank Rankings 2020", on its 21st became part of the United Na- • CEO of the Year in Banking Anniversary, with the following tions Global Compact, the world's Industry for Albania awards: largest corporate sustainability • The best bank for VIP Customer • "The best bank in Albania for initiative. United Nations Global Services - "Private Banking" in 2020" - Banka Kombëtare Compact is an international orga- Albania, 2020 Tregtare SHA, Tirana, Alba- nization operating worldwide, with nia the aim of mobilizing global com- • “Best Bank in Albania for panies to follow and implement asset stability for 2020” - the 10 Principles on Human Rights, Banka Kombëtare Tregtare Labor, Environment and Anti-Cor- SHA, Tirana, Albania ruption. By being part of the United • “The best bank in Albania Nations Global Compact, the Ban- for capital sustainability for ka Kombëtare Tregtare supports: 2020” - Banka Kombëtare • The initiative of doing business Global Excellence Award Tregtare SHA, Tirana, Alba- responsibly, by linking • The Best Banking & Financial nia strategies and operations with Services Provider in Albania - • "The best bank in Albania principles of human rights, 2020 for Earnings Before Tax for labor, environment and anti- 2020" - Banka Kombëtare corruption; Tregtare SHA, Tirana, Alba- • Undertaking strategic actions nia to support the Sustainable • "The best banker in Albania Development of society, for 2020" - Mr. Seyhan Pen- cooperation and innovation. "Prices of Excellence" by Euromoney cabligil, CEO, Banka Kom- are known as the most coveted bëtare Tregtare SHA, Tirana, and reliable awards in the banking Albania industry. OTP Bank - Albania was awarded by Euromoney with the "Best Bank in Albania for 2020”, award.

Mr. Silvio Pedrazzi, CEO of Inte- sa Sanpaolo Bank Albania, has been honored with the following awards by prestigious interna- tional magazines, in the field of

42 Bankieri OctoberTetor 2020 2020 www.aab.al AAB ACTIVITIES & TRAININGS The draft law on “Fiscal and Penal highly appreciated. Albanian Association of Banks, Amnesty for Subjects of Voluntary REAL security, and Group-IB hosted Declaration of Assets” Common Reporting Standards (CRS) a complimentary informative and The Ministry of Finance & Economy AAB Secretariat had an institutional interactive seminar, focused on online held consecutive meetings with communication with the General Tax fraud, on July 15th, 2020. Industry- stakeholders, officially starting the Directorate (GDT) and the Ministry leading experts shared their thoughts process of public consultation on of Finance & Economy, to address on today's main types of online fraud the Draft Law: "On Fiscal and Penal banks technical issues, related to and how to effectively prevent attacks Amnesty for Subjects of Voluntary CRS and by laws prepared on its you're most likely to face during and Declaration of Assets". implementation, and especially on the after the lockdown • On July 7th, AAB representatives extension of reporting deadline for attended the online meeting with Financial Institutions, until November Meeting with the Albanian Diaspora representatives of the Ministry 15th, 2020 (a proposal that was take Chamber of Commerce of Finance & Economy and & into the consideration by the ministry, On September 4th, the AAB General Tax Directorate, where by amending the law “On automatic Secretary General had a meeting the draft law was discussed in exchange of information”). Online with representatives of Albanian principle, and the respective meetings were organized, and were Diaspora Chamber of Commerce. technical details. attended by where representatives The main scope and activities of both • On July 15 & 16th, the AAB Secre- from banks’ IT and compliance organizations where presented and tariat presented to the Ministry of departments and GTD, as well. discussed, including possibilities Finance & Economy and the Par- for cooperation in areas of common liamentary Committee of Econo- Draft Law on Central Register of interest. my and Finance respectively, the Bank Accounts unified comments and sugges- On September 16th, representatives Credit Risk and Cash Flow Analysis - tions of member banks on the from member banks, along with AAB Inspiring Cases draft law. Secretariat, attended a consultation AAB, in collaboration with ATTF, • On July 24th, the AAB Secretary meeting with representatives of offered for the second time the on- General, along with banks’ rep- Ministry of Finance & Economy and line training on “Credit Risk and Cash resentatives, attended the hear- General Tax Directorate, where they Flow Analysis - Inspiring Cases”, ing session of the Parliamentary discussed the new draft Law: “On with the expert Erik de Jong. Virtual Committee for Economy and Fi- central register of bank accounts”. The Classrooms took place on July 6, 7th & nance, about the draft law. The main issues and concerns of banking July 13, 14th. The training was attended comments sent earlier by the sector on this regard were presented. by 14 participants. banking sector commission were Seminar focused on online fraud

PUBLICATIONS

CSR Report 2019 - Banks for Society For the sixth consecutive year, the Albanian Association of Banks (AAB) published the annual Corporate Social Responsibility Report on the banking industry. The publication presents the efforts by member banks for a better society and economy, a clean and healthy environment to achieve a sustainable development.

The AAB Annual Report 2019 ANNUAL REPORT This publication of AAB’s 2019 achievements particularly demonstrates how AAB, through eminent and professional activities, representation at expert level in every meeting or event, has further increased its social visibility to the general public and has turned into the reliable voice of banks, when it comes to relations with local public institutions and reputable international institutions.

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