Financial Stability Report 2015 H1

Economic activity in Albania expanded over the first half of 2015, driven by a boost in private investments - being foreign direct investments an important contributor - and by an improved trade balance. The easing of the monetary policy and the fiscal policy consolidation combined to support the stability of the macroeconomic framework. Volatility of the domestic currency exchange rate and interest rates were low. Government debt securities and interbank market operated normally, amid adequate liquidity conditions. International markets operated within a low interest rate environment, endeavouring to strengthen global economy upward trend. The banking sector financial performance is assessed as good and stable. Indicators of the capitalisation and liquidity levels of the activity stand at good levels and the banking sector generates profit. Therefore, its resilience to various shocks has strengthened over the period. This is also confirmed by the stress test exercise in accordance with macroeconomic scenarios and various risks for the liquidity situation.