Agreements and Cooperation

In order to maintain the financial stability at national level, the Bank of Albania, albeit being directly responsible for monetary policy, micro-prudential supervision and bank resolution, cooperates with the Ministry of Economy and Finance, the Financial Supervisory Authority and the Deposit Insurance Agency, not only at bilateral level, but also through the representation of these institutions in the Financial Stability Advisory Group (FSAG). During the FSAG meetings, the participants discuss assessments on financial stability and related risks, and exchange information on respective policy issues that affect the financial stability. This forum serves as a platform to discuss, assess the impact, and coordinate the positions related to other macro-prudential actions or issues. In order to adapt the scope of application of the macro-prudential policy pursuant to the estimations for the expansion of systemic risk, the Bank of Albania promotes the implementation of cooperation agreements with other regulatory agencies, the contribution of which is needed for taking measures for risk mitigation in the segments of the financial system that they directly supervise. 

At the international level, the origin of banks, their share in the banking group and their share in the banking sector in Albania, determines the need for cross-border cooperation as well. Currently, in the Albanian banking sector, banks from the European Union account for more than half of the total of the banking sector’s assets and contribute with a similar value in the financial intermediation. In accordance with the needs, as well as with the existing legal provisions in the respective jurisdictions, the Bank of Albania will seek cooperation will the respective macro-prudential European authorities. These are expected to expand and to increase the obligation of the parties, during the progress of Albania in the process of European Union integration. The principles of mutual interest and legal definitions will also guide the possibility of cooperation with other foreign authorities in the framework of the macro-prudential policy implementation.

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