Decisions by the Supervisory Council, 4 April 2018

In the meeting of 4 April 2018, the Supervisory Council of the Bank of Albania reviewed and decided to:

• Approve the Financial Stability Statement and Report, 2017 H2

The Financial Stability Report is an important periodic document prepared by the Bank of Albania whose main purpose is to identify and assess risks to the financial system and its infrastructure. The Financial Stability Statement, whose half-yearly release is a legal requirement set out in the Law “On the Bank of Albania”, prefaces the Financial Stability Report for the relevant period.

In this Report, the Bank of Albania assesses that developments in the real economy and financial markets in 2017 H2 sustained the expansion of the financial system's activity in Albania. The banking sector’s exposure toward activity risks was restrained, highlighting the significant improvements in the loan portfolio quality across all its components. Exposure to other risks is at manageable levels, but needs to be evaluated carefully on continuing basis. Hence, the banking sector’s ability to further expand financial intermediation and improve its efficiency indicators has improved. Banking sector’s capability to withstand activity risks, in view of high levels of liquidity, capitalization and profitability, remains robust. In the light of these developments, the Bank of Albania deems that the banking sector remains resilient.

The full Financial Stability Report will be published shortly on Bank of Albania's website http://www.bankofalbania.org/

• Approve some amendments  in the Regulation "On Consumer Credit and Mortgage Credit”

These amendments aim to increase the requirements on consumer’s protection, and to align the Albanian legislation with the European directives in this area. 

The approved amendments, in addition to some requirements to banks, lay down the right of the consumer for the conversion of credit in the currency in which the consumer generates the income, and the provision of an illustrative example that the bank should provide to the consumer as part of pre-contractual information, in the case the consumer applies for a credit in a currency different form the one of his income.

• Approve the Regulation "On resolution plans"

The regulation lays down the content of resolution plans, the assessment process of resolution’ s capacity by the Bank of Albania, and identifies the categories of the necessary information to draft the resolution plans from the decision-making authority.

Also, the Supervisory Council reviewed additional information related to the daily operational and functional activities of the Bank of Albania.