Financial Stability Report - 2017 H1

The Bank of Albania deems that the activity of the banking sector and of the overall financial system was stable in the first half of 2017 and its resilience to activity risks is good. Overall, the performance of macroeconomic indicators and developments in the economic environment at large provided better support for the activity of the financial system. In the banking sector, indicators of the financial performance, capitalisation and liquidity of the activity, improved overall. However, the analysis of determinant factors and stress test exercises suggest the need for monitoring of their performance over time. Developments in the banking sector during the period showed a significant improvement of the credit quality and affirmed the importance for the continuation of this process.