Institutional framework

At the institutional level, the Bank of Albania, in accordance with the legal hierarchy of the objectives regarding the policies and the functions it implements, ensures their maximal synergy. For this purpose, the organization of the internal institutional structure supports the definition of responsibilities at each stage of drafting and implementing policies, and promotes the timely exchange of information and critical assessments. As a result of this process, the final decision-making of the Bank of Albania is expected to be well informed and to reflect the contribution by the relevant policies.

The Bank of Albania’s structures that are more directly and sequentially involved in the implementation of the macro-prudential policy are:

  • Financial Stability Department - monitors systemic risk indicators, develops the methodologies for its assessment and the operationalization of macro-prudential instruments; proposes the Financial Stability Advisory Committee the instrument and manner of implementation, monitors the impact of the instrument, prepares reports and analyses for the systemic risk performance, as well as assesses the stability of the financial system;
  • Financial Stability Advisory Committee - assesses the performance of systemic risk, selects the macro-prudential instrument and determines its implementation; monitors the coordination of work for discussion within the institution and the preparation of legal and sub-legal acts necessary for the implementation of the instrument; formulates the macro-prudential stances for the Governor or the Supervisory Council in the framework of the Bank of Albania’s role in safeguarding financial stability;
  • The Governor - communicates the  stance of the Bank of Albania on systemic risks and the financial system stability, and decides on the implementation of the macro-prudential instrument if this is possible according to the decision-making procedures; 
  • Supervisory Council - reviews and approves the reports and analyses of the Bank of Albania on the assessment of the financial stability situation; is informed on the assessments on the manner of implementation of the macro-prudential policy; approves sub-legal acts necessary for the implementation of the relevant instruments of macro-prudential policy.