BANK OF ALBANIA
Governor Sejko addresses the IADI’s ERC Regional Committee Meeting, 4 April 2019
Publication date: 04.04.2019
On 4 April 2019, the Governor of the Bank of Albania, Mr Gent Sejko attended the meeting of the Europe Regional Committee (ERC). This meeting was jointly organised by the Albanian Deposit Insurance Agency (ADIA) and the International Association of Deposit Insurers (IADI), at the premises of the Bank of Albania.
The meeting was attended by representatives from: the Bank of Albania; the Albanian Deposit Insurance Agency; the International Association of Deposit Insurers, and insurers from regional countries. The discussions in this meeting focused on the role of the Europe Regional Committee regarding the strategic objectives of the International Association of Deposit Insurers and in finding new financing options.
In his address to this meeting, Governor Sejko highlighted the role of the Insurance Deposit Agency for the development of a stable and safe banking system. The Bank of Albania is by law the supervisory authority of the Insurance Deposit Agency, and has also helped in the establishment of this agency, aiming at enhancing public confidence in the banking system. Referring to the global financial crisis, the Governor pointed out the important role played by deposit insurers in crisis prevention and management. A well-designed deposit guarantee scheme largely supports financial stability and financial crisis resolution by mitigating the respective negative effects, as already proved by the experience during the last global financial crisis.
One of the objectives of the central bank is maintaining and guaranteeing financial stability. This objective may be achieved through the establishment of a well-coordinated financial safety net, which is supported by a resilient legal framework. In this regard, Mr Sejko, underlined that the Law “On the resolution and recovery of banks, in the Republic of Albania”, mandates the Bank of Albania as the resolution authority, and empowers it with the necessary tools and instruments to resolve failing banks, with no eventual impact on financial stability. Also, the law envisages the ADIA as the responsible authority for the administration of the resolution fund. Governor Sejko emphasised that the collaboration among the responsible institutions and stakeholders is crucial for the functioning of all the legal measures undertaken in this regard.
The Governor underscored the key role of the resolution in preserving the financial stability, as one of the main pillars of archiving the financial safety at home. Through the drafting of the resolution plans, the establishment of new financing resources to manage financial crisis and the identification of all necessary elements to mitigate them, the Bank of Albania is making significant steps toward supporting a sound and safe financial system.
The Albanian Deposit Insurance Agency is a public institution established in 2002. The Agency operates pursuant to the Law No. 53/2014, dated 22.05.2014 “On deposit insurance” and is mandated to administer the deposit insurance scheme in the Republic of Albania. The main objective of the deposits insurance scheme is the compensation of the deposits of depositors.