PRESS RELEASE
Decisions by the Supervisory Council, 2 October 2024

On 2 October 2024, in addition to the decision to keep the policy rate unchanged, at 3.0%, as well as overnight deposit and overnight loan rates at the Bank of Albania, at 2.0% and 4.0%, respectively, the Supervisory Council of the Bank of Albania reviewed and decided to:

• Approve amendments in the Regulation “On risk management in the activity of non-bank financial institutions”

These amendments take place in the framework of regulatory amendments package on consumer protection, as a reaction of the Bank of Albania in view of certain issues encountered in the market where these institutions carry out their activity. The amendments consist in laying dawn general principles in the process of conducting financial analysis on consumer borrowers, where particular emphasis is placed on assessing the sustainability of the borrower's income and creditworthiness; in addition it is aimed at preventing irresponsible lending practices to avoid unnecessary financial difficulties over debt situations for consumers. These amendments provide for the inclusion of additional requirements on assessing the borrower’s creditworthiness in consumer loans convents for non-bank financial institutions in lending activity and for micro-credit financial institutions, including the obligations for these entities that prior to granting a loan and throughout the loan duration time to carry out an assessment of consumer’s creditworthiness based on sufficient, accurate and up-to-date data and information, which must be reasonably verified by the entity. Also, part of these amendments is the addition of a requirement on non-bank financial institutions, which purchase non-performing loans. At the moment of these loans’ portfolio classification, these entities cannot classify the later as non-performing loans, if the repayment of the purchased loans instalments is done through a loan. These amendments shall enter into force on 1st January 2025.

• Decision 47/2024 ( only in Albanian version)

• Approve the Regulation “On minimum security requirements in the premises where banking and financial activities are carried out and on the transport of monetary values”

The regulation entails the improved version of the minimum security requirements in the premises where banking and financial activities are carried out as well as on the transport of monetary values. The improvement aims at preventing operational risks and the financial losses associated with them, by laying down minimum standards and conditions to ensure the physical safety of the banking and/or financial activity, as well as the integrity of information and communication technology systems used for its implementation. These amendments are based also on the amendments carried out in certain legal acts and by laws in the area of security and on the transport of monetary values.

Also, this Regulation aims at defining more precisely the tasks of the security units, as well as clarifying the procedures and communication relations between banks and other financial entities with the Bank of Albania.

The Supervisory Council was also informed on the daily functional and operational activities of the Bank of Albania.