Supervisory expectations for green finance

Based on the law no. 8269, dated 23.12.1997 "For the Bank of Albania", the Supervisory Council of the Bank of Albania has approved the Strategy “The management and supervision of climate-related financial risks in the financial sector Phase I: 2023-2025”.

Based on this strategy and its action plan, the Supervision Department publishes the guideline on regulatory expectations on climate - related and environment risks for banks.

This guideline is intended to serve as a basis for supervisory dialogue between the authority and banks, and aims integrating these risks into the general framework of risk management in banks.The guideline is based on the principles and initiatives of the European Central Bank, as well as the best practices applicable in the countries of the European Union.

For the purposes of this guideline, banks are required to make self-assessments and to report according to a defined templates, as specified by the following schedule:

1. until June 2025, banks report any deviations in their practices from the supervisory expectations described in the guideline, according to the template provided in Annex 2 of this guideline;

2. until June 2025, banks report their action plan aimed at progressively addressing these expectations, according to the template provided in Annex 3 of this guideline;

3. until June 2026, banks present follow up of the status of the action plan according, according to the template provided to Annex 4 of this guideline.