PRESS RELEASE
Decisions of the Supervisory Council, 1 February 2017

On 1 February 2017, the Supervisory Council of the Bank of Albania, in addition to the decision to keep the policy rate unchanged at 1.25%, analysed and decided to:

• Approve the Regulation "On consolidated supervision"

This amended regulation aims at completing and improving the regulatory framework of the Bank of Albania for the supervision of banking/financial groups operating in Albania.

This regulation is drafted in accordance with contemporary requirements for consolidated supervision provided in the European regulations and directives for credit institutions and banking and financial groups the core principles of the Basel Committee for effective banking supervision, and best practices for consolidated supervision.

• Approve amendments to the Regulation "On capital adequacy ratio"

The Supervisory Council analysed the influence that countercyclical measures have and approved an amendment regarding the way of their implementation for 2017. The amendment stipulates that the placements of the banking sector with non-residents for 2017 shall be monitored according to a two-year moving period, thereby stabilizing the requirement for additional capital by the banking sector. By the end of 2017, the Supervisory Council will reassess whether it is needed to continue with or change the measures.

• Approve the regulation " On reserve management policy"

This regulation is reviewed due to changes of conditions in international financial markets, where foreign reserves may be invested. Also, these changes reflect the need for a more effective treatment of increased risks during their management.

The Supervisory Council was also briefed and reviewed information related to the daily functioning and operational activities of the Bank of Albania, as well as the activities of the Inspector General for 2016 on internal auditing and operational risk management and the relevant work plan for 2017.