PRESS RELEASE
The First Deputy Governor of the Bank of Albania attends the International Conference: “Green Finance - Possibilities for the financial sector in Albania”

On 16 November 2022, the Financial Supervisory Authority (FSA) co-organised with the World Bank and the Swiss State Secretariat for Economic Affairs (SECO), the International Conference on “Green Finance - Possibilities for the financial sector in Albania.”

The conference convened high-level executives of the Albanian government, international financial institutions, regulators, and financial market stakeholders. In this activity, the Bank of Albania was represented by the first Deputy Governor, Ms Luljeta Minxhozi. The Deputy Governor addressed the panel focused on “The outlook of Albanian institutions on green finances.” This panel was moderated by the high-level representative of the World Bank, Mr Alper Ahmet Oguz, and the key speakers were Mirela Kumbaro, Minister of Tourism and Environment, Ms Frida Krifca, Minister of Agriculture and Rural Development, and Mr Ervin Mete, General Director of FSA.

In her remarks, Ms Minxhozi highlighted that central banks - as the designers of the monetary and supervisory policy of the banking system - play a key role in the economy in dealing with climate challenges. In this light, the central bank remains committed to systematically include climate and environmental threats in the adoption of its mandate, over the long-term perspective.

Ms Minxhozi added that the Bank of Albania, conducive to its objective, takes into consideration the risks posed by the climate and promotes a sustainable and comprehensive growth, putting environmental stability at the centre of its policies, by steering capital flows toward sustainable investments, avoiding financial risks borne by structural changes of the economy, as well as encouraging financial and economic transparency.

Furthermore, she emphasized that the Bank of Albania's strategy on climate changes is expected to evolve with time, as the available data expands and the necessary models to comprehend risks related to climate, improve. Meanwhile, after enrolling in the Network for Green Financial System, the Bank of Albania is actively working to integrate the various climate issues within its mandate.

The engagement to monitor climate risks on the economic and financial environment, where the Bank of Albania conducts its activity, is featured in its Medium-term Strategy 2022-2024. To this end, in collaboration with FinSAC, a survey on climate and environmental-related risks, has been launched in our banking sector. Also, the Bank of Albania is participating in various national, regional, and international forums dedicated to the assessment and the effective management of the economic and financial impact of climate changes.

In conclusion, Ms Minxhozi, put forth that the Bank of Albania will enthusiastically welcome banking-sector developments toward green finances and instruments, since it is the only way to address the risks posed by climate changes and carbon emissions.  However, green instruments and infrastructure financing necessitate a new approach in order to mobilise and intermediate long-term finances.