Annual Report 2013

The Bank of Albania operated amid a difficult internal and external macroeconomic context. Economic activity slowed its pace in 2013, while aggregate demand and inflationary pressures were weak. This year confirmed once again the altered configuration of global economy. The decision-making authorities faced an environment dominated by elevated risks, low economic growth, weak inflationary pressures and worsened balance sheets. In such a setting, the Bank of Albania has aimed at creating a safe and stable economic and financial environment through its monetary policy, liquidity management, macro-prudential measures and prudential banking system supervision. The Bank of Albania has strived to be clear in establishing the perimeter of its objectives and influence, and insist on harmonising its policies with other domestic macroeconomic policies. At the same time, it has widened the range of instruments and amended the regulatory framework to set up safety barriers and, eventually, foster price and financial system stability.