PRESS RELEASE
Resolution Fund

In April 2025, the Resolution Fund increased by ALL 1.04 billion resulting from the collection of the annual contribution paid by banks. In total, after the payment of the annual contribution by banks for eight years since its establishment, the Resolution Fund reached at ALL 6.78 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 in banks” in the Republic of Albania, within 10 years from the entry into force of the Law, the Resolution Fund should reach the target level of 0.5% of the banking system’s total liabilities. These liabilities are calculated as the difference between total assets and the regulatory capital of all licensed banks 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 in the Law, the Resolution Fund by 2027, should reach the value of ALL 8.9 billion. With a view to meet this target for 2025, the annual contribution paid by the banking sector was calculated pursuant to the Regulation No. 56/2017 “On Resolution Fund and its administration procedures” and amounted ALL 1.04 billion. This annual contribution, for the eighth year during the period 2018-2025, was completely paid and in a proportional manner by all banks of the sector, up to 30 April 2025.

After the pooling of this contribution, financial assets of the fund reached at All 6.870 billion.

The Deposit Insurance Agency manages the Resolution Fund, 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.

21 May 2025