BANK OF ALBANIA

PRESS RELEASE
Decisions by the Supervisory Council of the Bank of Albania, 4 November 2020

Publication date: 04.11.2020

 

On 4 November 2020, in addition to the decision to keep the monetary policy rate unchanged at 0.5%, as well as the interest rates for the overnight deposit facility and the overnight lending facility at 0.1% and 0.9%, respectively, the Supervisory Council of the Bank of Albania reviewed and decided to:

  • Approve the Regulation “On the conditions under which takes place the application of early intervention measures and the way of conducting temporary management”

This regulation is issued pursuant to  the Law No. 133/2016 “On the recovery and resolution of banks in the Republic of Albania”, which sets out the obligation of the supervisory authority to determine by a by-law the triggers for the decision on the application of the early intervention measures and the way for carrying out the temporary management.

  • Approve the Regulation “On the establishment, licensing, supervision, functioning, and completion of the activity of bridge banks”

Bridge bank is a tool available to the Bank of Albania created to ensuring the continuation of commercial bank’s critical function which is placed under resolution.  The Regulation on Bridge Bank fully revises the applicable Regulation and aims at providing the compliance with the provisos laid down in the Law No. 133/2016 ''On the recovery and resolution of banks in the Republic of Albania''. 

  • Approve the Regulation “On the financial leverage ratio of banks”

The Regulation lays down the criteria and rules for the calculation of the financial leverage ratio of banks, and the minimum level of this ratio.  This Regulation further approximates the Bank of Albania’s legal framework with Basel  III  requirements on financial leverage ratio and with the EU Directives [1] on the financial leverage ratio, in compliance with the strategic objectives of the Bank of Albania and its commitments stemming  from  the  Stabilization  and  Association  Agreement, and the steps to be taken for the compliance with The European  Union  acquis:.

 

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

 

[1] Regulation 575/2013/EU (Capital Requirements Regulation-CRR) amended with Regulation 2019/876/EU.