PRESS RELEASE
Decision by the Supervisory Council, 3 September 2025

On 3 September 2025, the Supervisory Council of the Bank of Albania reviewed and decided to:

• Approve the Financial Stability Statement and Financial Stability Report for 2025 H1

The Financial Stability Report is an important periodic publication prepared by the Bank of Albania, whose main purpose is to identify and assess risks to the financial system and its infrastructure. The Financial Stability Statement - whose half-yearly release is a legal requirement as set out in the Law “On the Bank of Albania” - prefaces this Report.

The Bank of Albania assesses that the activity of the financial system was stable over the course of 2025 H1. Banking sector activity expanded, mainly due to growth in deposits and capital, which were primarily directed toward lending and investments in securities. The net financial result of the sector was positive, though slightly lower compared with the same period of the previous year. Risks arising from interconnections between the banking sector and other segments of the financial system, as well as from the sector’s own activity, remain contained. Indicators of financial resilience and stress-test results show that banking sector is resilient to identified risks.

Economic developments during this period were positive, driven by the good performance in consumption and investments, the narrowing of the trade deficit, and the positive and stable performance in the tourism sector. Economic growth was accompanied by a decline in unemployment and increase in both employment and wages. The fiscal policy has maintained the consolidation trend over the period, while revenue collection stood at better levels than the planned target. Inflationary pressures have remained below the Bank of Albania’s target. However, risks to the country’s financial and economic development persist and are mainly stemming from uncertainty and impact of international developments. Against this backdrop, it is crucial that the financial and economic policies of public authorities, as well as the actions of market participants, remain focused on preserving financial buffers and ensuring effective investment management.

In this the meeting, the Supervisory Council also approved the six-month report on the compliance of the banking sector with the minimum requirement for own funds and eligible liabilities (MREL), a key parameter within the resolution process. For 2025, the interim MREL requirement has been set at 20.2% of risk-weighted exposures. As of end 2025 H1, the banking sector’s MREL capacity was estimated at 22.6%. In order to meet the MREL requirement, banks increased the issuance of unsecured eligible instruments in the form of debt during 2025 H1. The associated issuance costs are currently assessed as fully sustainable, supported by the banking sector’s strong financial performance.

• Approve some amendments to the Regulation “On the licensing, organization, activity and supervision of foreign exchange bureaus”

The proposed amendments to the regulation aim to improve the licensing process and the supervision of foreign exchange bureaus. They reinforce the requirements on reputation, integrity and financial stability of entities, in compliance with international standards and Moneyval recommendations on anti-money laundering and countering the financing of terrorism.

The main amendments relate to the increase in initial capital, the documentation of capital sources and the requirements for conducting the activity. These amendments aim at strengthening the regulatory requirements, among other things, address the entry and operation in the market of entities that meet the necessary conditions of financial stability, adequacy and integrity of capital ownership structures, responsible management, and compliance with the regulatory framework.

• Approve the revised regulations of the payment systems: AIPS, AIPS EURO and AECH, as well as the SWIFT system functioning

The Bank of Albania has embarked on a modernization process of the AIPS, AIPS EURO and AECH payment systems, in line with the technological innovations and the need to improve the regulatory framework supporting their operation. The revisions aim not only to ensure the efficient functioning of these systems, but also the advancement towards meeting the objectives of policies on enhancing both the use of electronic payments and financial inclusion. In this context, the Bank of Albania has considerably reduced payment costs for citizens and businesses, thereby encouraging the use of electronic channels. In more concrete terms:

• Electronic payments in amounts up to ALL 40,000 shall be exempt from commission fees for consumers.
• For electronic payments up to ALL 10 million, commission fees have been reduced by nearly 10-fold, significantly enhancing the use of AECH system.
• For euro-denominated payments, both the minimum commission fees and applicable percentage rates have also been reduced by around 10-fold, offering considerably more favorable conditions for domestic euro transactions, while establishing a trajectory aligned with commission fees applied in SEPA cross-border transfers.

These amendments are expected to generate around EUR 40 million annual savings for Albanian citizens and the economy, while simultaneously laying the groundwork for the country’s further integration into SEPA and the implementation of the TIPS Clone project for instant payments.

The Bank of Albania’s initiative has been commended by international partners involved in payment system projects and also serves as a regulatory benchmark for other central banks in the region, supporting successful SEPA payment integration.

• Approve some amendments to the regulation “On the establishment of requirements for credit transfers and direct debits in euro”

The amendments to the regulation aim to establish SEPA cross-border transaction fees, in compliance with EU Regulation 2021/1230 and the principle of aligning fees with domestic transaction fees. These amendments constitute a necessary precondition for the launch of SEPA implementation on 7 October 2025, ensuring that cross-border payment fees are equal to those applied domestically. Their implementation will significantly reduce costs for households and businesses, bolster competition and the use of electronic payments and ensure equal market conditions for financial institutions. In this context, fees charged on SEPA outgoing payments shall not exceed the prescribed limits set for domestic euro- denominated payments.

Also, the Supervisory Council was briefed and received further information on the Bank of Albania’s daily functional and operational activities.