Financial Stability Report - 2020 H1

The Bank of Albania deems that in 2020 H1 (hereinafter ‘the period’), banking sector showed a stable activity, notwithstanding the challenges posed by pandemic situation in Albania. The operational measures taken by banks to ensure the continuation of both critical functions and relationships with customers, and the measures taken by public authorities to mitigate the pandemic shock on the economic and financial activity of Albania, provided for the adequate continuation of the intermediation activity and the financial sector indicators remain at good levels. The uncertainty about economic prospects given the pandemic presence is considerable; like the challenges to banking and financial activities. Nevertheless, the assessments by banking industry and the stress tests suggest that currently the banking sector’s ability to withstand these challenges is sufficient. The Bank of Albania remains willing to undertake all the necessary operations in accordance with the Law to support the banking activity and contribute to the stability of the financial system.