PRESS RELEASE
Resolution Fund

In April 2022, the Resolution Fund increased by ALL 734.6 million from the collection of the annual contribution of banks. In total, after the annual contribution of banks for five years since its establishment, the Resolution Fund amounts to ALL 3,459 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 10 years, 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 7.12 billion. In view to meet this target level, for 2022 the annual contribution of the banking sector was estimated at ALL 734.6 million. Annual contribution calculated pursuant to regulation No. 56/2017 '’On the Resolution Fund and the procedures for its management", as amended, was paid in full proportionally by all banks of the banking system, within the date 30 April 2022.

After collecting the contribution for the fifth year, at the end of April, the financial assets of the Resolution Fund reached ALL 3,459 billion, as a result of the annual contributions of the banks collected during a-five-year-period (2018-2022).

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.