PRESS RELEASE
Decisions by the Supervisory Council, 3 April 2024

In the meeting of 3 April 2024, the Supervisory Council of the Bank of Albania reviewed and decided to:

• Approve the Financial Stability Statement and Report 2023 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 report.

The Bank of Albania assesses that in 2023 H2 (hereinafter ‘the period’), the activity of the banking sector improved. Deposits and loans expanded despite the dampening effect of exchange rate appreciation, the activity capitalized at good levels while profit improved significantly. Risks to the activity are assessed as contained and, overall, the resilience of banking activity against them has strengthened. However, risks to banking activity are always present. In this view, banks should use the better financial performance to improve the risk management infrastructure. 

Economic developments during the period were positive, affected by the good performance of consumption and investments, and particularly by the improvements in the current account of the balance of payments. Economic growth was accompanied by a reduction in the unemployment and an increase in both employment and wages. Fiscal policy maintained a consolidating trend as fiscal revenue grew significantly. Inflationary pressures have been declining, but inflation rate persisted above the Bank of Albania’s target. The response of the monetary policy in the future will be based on the current data and will reflect the analysis of the risk factors to the inflation performance. Risks to the economic and financial developments in Albania remain present. They are related mainly to the uncertainty surrounding the geopolitical developments. In these circumstances, it is important that economic policies use this favourable period in regard to the economic and financial developments in the country, to consolidate achievements and to further reform the economy aiming to achieve a more sustainable and balanced development in the future.

• Approve the Regulation "On determining the requirements for credit transfers and direct debit in euro"
• This regulation is compiled in the framework of Albania's membership application in SEPA known as the "Single Euro Payments Area". Joining SEPA is an objective of the Bank of Albania to promote the modernization of the payment systems market and their integration with the European markets as well as with the countries of the Western Balkans. Accelerated membership in SEPA is part of the project "The Western Balkans Payment Modernization” as well as the objective of the Albanian government to meet one of the criteria set by the EU plan for the economic growth of the Balkans. The regulation fully transposes the provisions laid down in the EU regulation on establishing technical and business requirements for credit transfers and direct debits in euro. Printing the Albanian banknotes legal tender, denominations 200 Lekë and 500 Lekë

This Decision provides the printing of the 200 Lekë and 500 Lekë banknotes, legal tender, in order to fulfil the economy demand for cash, in value and structure, as well as ensuring their regular supply for an extended period of time.

• Approve the minting of a commemorative coin, for numismatic purposes, with the theme "100 years Bank of Albania, 1925-2025"

Through this decision, the Supervisory Council approved the design configurations of the 100 Lek commemorative coin, without legal tender, in silver, with the theme "100 years Bank of Albania, 1925-2025", which will be minted by the Bank of Albania in 2024 in the framework of the celebrations for the 100th anniversary of the establishment of the "Banka Kombëtare e Shqipnis", which was the first central bank in Albania.

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