Financial Stability Report - 2022 H1

The Bank of Albania deems that in 2022 H1, operations of the banking sector were stable and risks remained at contained levels. Deposits and loans grew at a slower pace, while some indicators of the activity showed a higher volatility. Economic developments, throughout the period, were positive, although the effect from international developments in high energy prices and soaring inflation, were more pronounced. Both monetary policy and fiscal policy have taken measures to mitigate the problems coming from the uprising inflation, to ensure electrical energy at an acceptable cost and strengthen capacities to protect those most in needs in the society. The up-coming economic developments remain challenging. In this light, banks should be more attentive for identifying and managing risks of their activity, and for maintaining the resilience indicators at good levels. The Bank of Albania, as always, through its available instruments, for conducting its policies as the monetary and supervisory authority, will support the well-functioning of the banking activity and safeguarding financial stability.