PRESS RELEASE
Decisions by the Supervisory Council of the Bank of Albania, 24 November 2021

In its meeting of 24 November 2021, the Supervisory Council of the Bank of Albania reviewed and decided to:

• Approve the Medium-term Development Strategy of the Bank of Albania for 2022-2024

Medium-term Development Strategy of the Bank of Albania for 2022-2024 sets out the institutional objectives of the Bank of Albania over the period 2022-2024, serving also as a guide for preparing the planned medium-term budget.

The strategy aims to give a proactive response to the challenges of the environment where the Bank of Albania operates; increase the cooperation within the institution; promote the effective and efficient use of resources; as well promote public transparency and accountability.

The strategy includes the main functions of the Bank: policies (monetary policy, foreign currency reserve, banking supervision); financial infrastructure (money issue, payment systems); good governance (audit, financial communication and education); other functions (research, statistics); and supporting services (human resources, legal issues, accounting and finance, procurement and services, IT).

Information on the implementation of the Medium-term Development Strategy is a regular part of the annual reports of the Bank of Albania.

• Approve the budget of the Bank of Albania for 2022 and the planned medium-term budget for the period 2023-2024.

The budget approved for 2022 and the planned medium-term one for 2023-2024 guarantees the fulfilment of the strategic objective of the Bank of Albania forecasted in its Medium-term Development Strategy. The budget takes into account the current situation in international financial markets, the economic and financial developments in Albania, current and capital expenditure which are indispensable for a good management of assets and human resources.

The budget of the Bank of Albania for 2022- 2024, among other things, aims to further perfect the monetary policy and operations framework, further develop the professional capabilities of the Bank of Albania, supply the economy with qualitative banknotes, careful processing of the banknote, as well as perfecting public communication and transparency. At the same time, the budget supports the necessary investments for the improvement of the technological infrastructure, security and the environments where the activity of the Bank of Albania is exercised.

• Some amendments to the Regulation “On transparency of banking and financial products and services”

The amendments aim to ensure the change/substitute of reference rates (reference indices/IBOR-s) and the presentation of the “clause of changing the orienting index” with a view to mitigate the risks of adopting the new reference rates in the most normal and effective manner.

• The adoption of some by-laws and amendments to enforceable acts that regulate the licensing process of payment institutions and electronic money institutions, as well as register some categories of payment service providers that benefit from exceptions, which are derived pursuant to the provisions laid down in the Law “On payment services,” respectively: 

• The new Regulation “On licensing payment institutions and electronic money institutions, as well as registering payment services providers”, which sets out the conditions, requirements, time frame, documentation and procedures for licensing the providers of payment services in the Republic of Albania, which benefit from exceptions, as well as for granting approvals by the Bank of Albania and the obligation of notification by entities, during the exercise of the activity of such entities.

• Some amendments to the Regulation “On granting the license and the exercise of banking activity of banks and branches of foreign banks in the Republic of Albania,” which consist mainly in adding some requirements on the agents of banks, when the latter operate with agents who only serve as payment service providers.

• Some amendments to the Regulation “On the granting of license to non-bank financial institutions,” which are mainly related to licensing requirements and prior approvals for non-bank financial institutions that provide payment services and money transfers, as well as for electronic money institutions, which  are now treated in accordance with the new legal and regulatory requirements.

• Some amendments to the Regulation “On licensing and activity of savings and loan associations and their Unions,” which aim to ensure compliance with the new legal and regulatory requirements. From now on Savings and Loans Associations (SLAs), which will carry out the financial activity of payment services, will be granted with a special license as payment institution in addition to the SLA license.

• Some amendments to the Regulation “On minimum security requirements regarding premises where banking and financial activities are conducted and transportation of monetary values”. These amendments consist in including the payment institutions and electronic money institutions as entities subject to this Regulation. Whereas as regards banks, they are responsible to verify the compliance with the requirements of the regulation from their agents, when the latter provide payment services through agents.

 The Supervisory Council was also informed on daily functional and operational activities of the Bank of Albania.