Instruments and Decisions


According to the regulation “On macroprudential capital buffers” approved with the decision no.41, date 05.06.2019 of the Supervisory Council of the Bank of Albania  (herein, ‘ regulation 41/2019’), the Bank of Albania (BoA) determines and announces the macroprudential capital buffer (SHMAK). Those are: capital conservation buffer (KONS), article 10; countercyclical capital buffer (KUNC), articles 11 to 13; capital buffers for systemic banks (SIST) applied to systemic banks (BARS), article 14; and the systemic risk buffer (STRUK), article 15. According to article 6, the macroprudential capital buffer is raised in instruments of core equity tier one capital, it is expressed in percent of risk weighted exposures of the bank, and the aggregated value of the macroprudential capital buffers represent the combined buffer requirement (SHKOMAK).

For KONS, regulation 41/2019 stipulates in article 10, paragraph (1), table 2, the value that should be met from each of the banks on March 29, 2020 (and kept until end of 2020) which is 0.5%. For year 2021, this capital buffer increases to 1.0 percent.

For KUNC, regulation 41/2019 stipulates in its article 12, paragraph (3), that BoA announces the applied rate (AKUNC) for Albania for the first time within June 2019, and subsequently does it every three months. According to paragraph (4) of the same article, the date of application is not sooner than March 29, 2020. For banks that have relevant credit exposures (EPSHK) in foreign jurisdictions, the determination of AKUNC for each such jurisdictions is done according to article 13. When there is not a different determination by BoA, the application date for KUNC in the foreign jurisdiction will be that which is determined by the responsible authority of that jurisdiction, but not earlier than March 29, 2020. The KUNC that is specific for a bank (SPEKUNC), will be capped by the values shown in article 11, paragraph (7), table 3. For calculating SPEKUNC, the KUNC rates applied in countries of European Union and of European Economic Area, can be found in the internet site of ESRB; while the rates applied for relevant credit exposures in countries not listed in the ESRB website, can be found in the BIS website.

For BARS and SIST, the regulation stipulates in its article 14, paragraph (6), that BARS will be determined for the first time within June 2019 and, later on, once a year during the first quarter (paragraph (5)). Subject to bank’s systemic  importance mark, the values of SIST will be in accordance to the table in paragraph (7), or up to 1.0% for year 2021 . According to paragraph (9), BoA will announce the list of BARS and respective SIST values.

For STRUK, the regulation stipulates in article 15, paragraph (7), that BoA will determine STRUK for the first time after June 2019, without fixing a specific deadline.

In line with article 16 of the regulation 41/2019, the determination of the macroprudential capital buffer, is done through a decision of the Governor of the Bank of Albania. According to article 17, in order to announce the macroprudential capital buffers, the said decision of the Governor of BoA, is published in BoA web site and is officially notified to banks in writing.

The decision of the Bank of Albania

Accordingly, the Governor of BoA has reached the decision no. 1714, datë 25 March 2020 “For the determination of the macroprudential capital buffers and of the systemically important banks".

Values of macroprudential capital buffers that should be met by banks banks and related deadlines

Accordingly, the combined macroprudential capital buffer to be met by banks and related deadlines are as follows:




Bank Date of observation
1 SIST According to the decision of the Governor no 1714, date 25.03.2020, capped at 0.5% for 2020 Not applicable From 1 January 2021
2 KONS 0.5% 0.5% From 1 January 2021
3 SPEKUNC Based on Decision no 1714, date 25.03.2020 and according to banks’ calculations, but capped at 0.625% for 2020 Based on Decision no 1714, date 25.03.2020 and according to banks’ calculations, but capped at 0.625% for 2020 From 31 March 2021
4 = 1+2+3 SHKOMAK 0.5% + 0.5% + SPEKUNC 0.5% + 0.5% + SPEKUNC  

According to regulation 41/2019, if the combined buffer requirement value is not met then the bank is subject to limits on payment distributions as stipulated in article 8, and other measures as stipulated in article 9.

Justification for Countercyclical Capital Buffer

​​​​​​​​​​​​​​Justification for Countercyclical Capital Buffer

Justification for Countercyclical Capital Buffer