BANK OF ALBANIA

Decisions by the Supervisory Council, 2 May 2018

Publication date: 02.05.2018

 

On 02 May 2018, in addition to the decision to keep the monetary policy rate unchanged at 1.25%, as well as the interest rates for the overnight deposit facility and the overnight lending facility at 0.25% and 2.25%, respectively, the Supervisory Council of the Bank of Albania reviewed and decided to:

  • Review the document “Supervision policies of the payment and settlement systems”

The review of the “Supervision policies of the payment and settlement systems” document aims to change the criteria, the manner and frequency of system classification according to the systemic importance they represent, with a view to approximation with European standards.

  • Approve amendments to the Regulation "On reporting to the Bank of Albania according to the Unified Reporting System"

The amendments aim at improving the reporting process between the Bank of Albania and reporting entities as a result of the implementation of the Electronic Regulatory Reporting ERRS). Another amendment foresees the repeal of the reporting obligation in paper for non-bank financial institutions and for savings and loan associations.

  • Approve amendments to the Regulation “On Capital Adequacy Ratio”

These amendments repeal one of the counter-cyclical measures initially imposed on banks in 2013, which established additional capital requirements, in the case of increased net investments in non-resident financial institutions.

The repeal of this measure follows a fall in investments with non-residents and it is necessary to ensure compliance with the objectives and measures for promoting the use of the national currency in the financial system activity (also known as the "de-euroziation package”)

  • Approve the cooperation agreement with London School of Economics, Global Affair Institute, as an external collaborator of the Bank of Albania

Based on this decision, the Supervisory Council approved the cooperation agreement of the Bank of Albania with the London School of Economics (LSE), the Global Affair Institute. LSE is ranked at the top 10 universities in the world in finance, economics and econometrics as well as in legislative, political and international relations fields.

This cooperation will aim to strengthen the analysing and researching capacities of the Bank of Albania, to enhance the knowledge on political and economic developments and challenges that Albania and South-Eastern Europe is facing.

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