PRESS RELEASE
RESOLUTION FUND

  In April 2021, the Resolution Fund increased by ALL 664 million from the collection of the annual contribution of banks. In total, after the annual contribution of the banks for four years since its establishment, the Resolution Fund reaches ALL 2.668 billion.

The Resolution Fund was established in 2018, for the implementation of the resolution instruments by the Bank of Albania. Pursuant to the Law No. 133/2016 “On the Recovery and Resolution of banks in the Republic of Albania”, within 2027, the Resolution Fund should reach the target level of 0.5% of the total liabilities of the banking system, calculated as the difference between total assets and regulatory capital of all banks licensed in the Republic of Albania. Banks pay regular annual contributions in order to meet the target level of the Fund.

According to the deadline set by Law, the Resolution Fund, by 2027, should reach the value of ALL 6.64 billion. In view to meet this target level, for 2021 the annual contribution of the banking sector was estimated at ALL 664 million. The annual contribution calculated pursuant to the Regulation No 56/2017 “On the Resolution Fund and the procedures for its management”, as amended, was fully paid, proportionally by all banks of the banking system, by 30 April 2021.

After collecting the contribution for the fourth year, the financial assets of the Resolution Fund, at end of April 2021, reached around ALL 2.668 billion, as a result of the annual contributions of the banks collected during a-four-year-period (2018-2021).

The Resolution Fund is managed by the Deposit Insurance Agency in compliance with the policy on the management of financial assets approved by the Bank of Albania.

The Resolution Fund can be used by the Bank of Albania for several purposes, such as: guaranteeing the assets or liabilities of the bank in resolution, the bridge bank or the company for the management of assets; meeting the need for liquidity of the bank in resolution, the bridge bank or the company for the management of assets; purchasing the bank's assets in resolution, to contribute to the capital and to provide other necessary funds for the bridge bank or the company for the management of the assets; compensation for unhedged losses arising due to the exclusion of the eligible liabilities of creditors of the bank in resolution; covering the expenses for the management of the Resolution Fund, etc.