PRESS RELEASE
Decisions by the Supervisory Council, 7 September 2022

On 7 September 2022, the Supervisory Council of the Bank of Albania reviewed and decided to:

Approve the Financial Stability Statement and Financial Stability Report for 2022 H1

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 estimates that in 2022 H1, the activity banking sector was sustainable. Deposits and loans grew at a slower pace compared to previous periods, credit quality continued to improve and the other indicators of the financial system stability remained at adequate levels. Overall, the exposure of the banking sector to risks appeared contained. Economic developments throughout the period were positive, although economic growth and high prices of energy and food in the international market maintained significant inflationary pressures. Under these conditions, the normalization of the monetary policy has begun aiming to reduce the inflation rate in the medium term, and fiscal and administrative measures are being taken to ensure the necessary energy for the economy. Due to the astronomic electricity prices in the international market and the position of our country as a 'net importer' of energy, the growth of economy in the upcoming months is challenging enough. If the economy slows down, the solvency of enterprises and households may decrease, and be transmitted to the banking sector through the decrease in the quality of assets, the decrease in activity profit levels or the creation of financial losses. In order to manage this scenario, it is necessary for banks to identify their most sensitive exposures and take timely actions necessary to cover the risks, including the creation of financial reserves and the strengthening of capital positions. The Bank of Albania will continue to carefully monitor developments in the banking sector and macroeconomic and financial indicators. This process ensures that the policy decisions of the institution respond to current developments and the expectations that are built on them, always aiming to maintain macroeconomic and financial stability.

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

Approve the minting of commemorative metallic coins, for numismatic purposes, in 2023.

The Supervisory Council of the Bank of Albania decided to approve the issuance of a commemorative coin with the theme “Sevasti Qiriazi-Dako (1871-1949), activist of the National Movement for the Albanian women’s emancipation ".

Sevasti Qiriazi Dako (1871-1949) was a teacher and lecturer, an intellectual, a thinker and a politician, a tireless activist, who for certain opened a bright and glorious window in the history of Albanian education and schools.

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