PRESS RELEASE
BANKING SUPERVISION MISSION Document

The supervision function is carried out by the Bank of Albania, as the central bank, pursuant to Law "On the Bank of Albania" no. 8269, dated 23.12.1997 and the Law "On Banks in the Republic of Albania" no. 8365, dated 02.07.1998.

Mission of Banking Supervision

Pursuant to the legal responsibilities as the supervisory authority of banks and other entities, performing financial activities licensed by it, the Bank of Albania:

• provides a sound banking activity in full agreement with and pursuant to the respective legal and regulative framework, with a view to preventing the financial crisis and protecting the depositors;
• maintains the banking system stability, monitoring the market development and making recommendations on the necessary measures, in order for banks to adapt themselves to these developments and be administered according to the best principles;
• builds up public trust in the banking system and boosts market discipline, aiming at increasing the banking system transparency;
• influences on maintaining a fair competition in the banking system and at large, and provides equal opportunities to the licensed entities and their clients;
• provides a continuous and professional communication with the financial market operators and other institutions influencing on the activity of the Bank of Albania, in the context of enhancing the operation of the financial market and its operators.

The Bank of Albania carries out its supervisory function through:

a) the continuous building and improvement of the regulative supervisory framework, in accordance with the best international principles and applicable in practice;

b) on-site and off-site examinations of the licensed institutions indices, as well as through the correcting measures taken for the solution of various issues;

c) the orientation of the supervisory process towards the identification of the risk the licensed institutions are faced with, and recommending relevant solutions;

d) the set up of policies, which aim at orienting the banking system towards desired developments;

e) the cooperation with the supervised financial institutions, other domestic financial institutions and the supervisory authorities of other countries;

f) the ongoing improvement of the supervisory capacities.

To the implementation of the supervisory function requirements, the Bank of Albania aims at high levels of integrity, professionalism, efficiency and transparency.