Objectives - Standards
The Bank of Albania bases its objectives of payment systems oversight on regulations, standards, and policies for the different entities subject to the scope of application of this function. Within this framework, the scope and intensity of oversight may vary depending on importance of each entity, and the financial market infrastructure evolution, taking into account all elements that may impair the smooth functioning of the payments system.
Payment systems oversight standards provide the benchmark for promoting the safety and efficiency in licencing, regulation and oversight of important elements in the Financial Markets Infrastructure.
Monitoring and assessing these entities in relation to the safety and efficiency and proposals for amendments, where necessary, is the main activity of the Bank of Albania in this aspect.
The main oversight standards are those of the European Central Bank (ECB), and Bank for International Settlements (BIS) on financial market infrastructure, and national standards when necessary, based on the most recent developments at home.
- Regulation "On the licensing, regulation and oversight of payment system and clearing house operators" (Albanian version).
- Regulation "On the licensing, regulation and oversight of national card payment schemes operators"
The Bank of Albania, in the framework of its oversight policies, categorises the large value payment systems as systemically important . As such, their oversight is carried out in line with Financial Markets Infrastructure principles.
The classification of small value payment systems by systemic importance will be based on the fulfilment of three criteria, which take account of the market share, financial risk in aggregate terms, and domino effect risk.
Based on these criteria, the Bank of Albania has classified AIPS and AECH as systemically important for the Albanian payment system.
- Market share - the only small value payment system at the national level, or the share of its activity is 75% or higher
- Financial risk - the share of its activity in the RTGS is above 10%
- Domino effect - the concentration ratio for the five most active participants is above 80%