Financial Stability Report - 2021 H1

The Bank of Albania deems that in 2021 H1, operations of the banking sector were stable. Deposits and loans grew, credit quality improved considerably, and other financial stability indicators remained at appropriate levels. The overall risk exposure of the banking sector was contained. The improvement of the healthcare situation supported the fast recovery of the economic activity. The experience of this period shows that the acceleration of the vaccination process is vital in mitigating the uncertainties of the pandemic on the economic and financial outlook. At the same time, these uncertainties evidence that the economic, financial and prudential policies preserve the flexibility in order to react if necessary. As regards banks, the regular assessment of the degree of exposure to risks and maintaining a proactive stance for taking measures to mitigate and withstand them, is currently pertinent. In this regard, Bank of Albania stands ready to undertake all necessary actions according to the law, in order to support banking activity and contribute to the stability of the financial system.