PRESS RELEASE
High-level workshop on: Corporate Governance in the Financial Sector

On 2 June 2016, the Bank of Albania in cooperation with the International Finance Corporation (IFC) and the Swiss State Secretariat for Economic Affairs (SECO)* organized a high-level workshop on " Corporate governance in the financial sector" in Albania.

The workshop discussed challenges to corporate governance and improvement of governance practices in the financial sector in Albania with a view to approximating them to international standards

Executives and senior representatives of commercial banks and non-bank financial institutions operating in Albania, representatives from the Swiss Embassy in Albania; the European Bank for Reconstruction and Development; the Albanian Financial Supervision Authority, the Bank of Albania, the International Finance Corporation, the World Bank and the International Monetary Fund attended the workshop. The keynote speaker was Mr Eddy Wymeersch, an expert in corporate governance and the Chairman of the Public Interest Oversight Board in Madrid.

In her welcoming note Ms Elisabeta Gjoni, the first Deputy Governor of the Bank of Albania, highlighted the important role of the Bank of Albania as the supervisory authority in ensuring banking system stability.

Ms Gjoni said, among others, that the Bank of Albania ensures through the regulatory framework the implementation by banks of sound practices on corporate governance. Moreover, the Bank of Albania supports initiatives for improving these practices in line with international standards.

Deputy Governor Gjoni added that the banking system is aware of and familiar with the international principles of corporate governance; however, there is still room for improvement in terms of: the role of the banks' Steering Councils and Audit Committees; measurement systems; risk control and monitoring, internal audit; risk and compliance; strategic planning towards setting clear objectives and drafting detailed plans and allocating resources for their achievement, etc.

Ms Gjoni focused also on the cooperation project between the Bank of Albania and the European Bank for Reconstruction and Development (EBRD) on strengthening the supervisory function of banks corporate governance and aligning its practices with the European Central Bank (ECB) practices.

Corporate governance is recognized today as one of the key factors contributing to establishing appropriate mechanisms for ensuring banks accountability, in particular the structure of the committees and steering councils for good management and smooth functioning of their activities in order to protect the interests of all stakeholders.

In conclusion, participants discussed on corporate governance-related challenges faced by financial institutions and other businesses, initiatives taken by regulators and potential areas identified for improvement such as intensification of the inter-institutional dialogue between financial institutions, regulators and international institutions, strengthening corporate governance standards and the primary role of banks to promote best practices of corporate governance to businesses operating in the real sector.

* In 2013, the Bank of Albania signed a cooperation agreement with the Swiss State Secretariat for Economic Affairs (SECO), enabling Albania to be part of the program on bilateral assistance and capacity building for central banks.