BANK OF ALBANIA

PRESS RELEASE
Decisions of the Supervisory Council at the meeting of 2 December 2015

Publication date: 03.12.2015

 

In its meeting of 2 December 2015, the Supervisory Council of the Bank of Albania reviewed and decided to:

  • Approve the new Statute of the Bank of Albania

The Statue is one of the fundamental documents which sets out the core principles of institutional, administrative and operational procedures in accordance with the Law on the Bank of Albania. The previous statute will be repealed upon the approval of the new Statute, approved with the Supervisory Council's Decision No. 100, dated 19.12.2000, as amended.

The approval of the new statute is the finalisation of a process on the adoption of the provisions on the organisation and functioning of the Bank of Albania with the best practices of the European System of Central Banks, the addressing of various recommendations of the international financial institutions and the reflection of some other earlier regulatory amendments.  

Some of the new provisions laid down in the Statute are:

  • The clear definition of the tasks and responsibilities of the Bank of Albania's Administrators.
  • The stipulation of clear procedures related to the substitution of administrators in case of absence or when they are unable to act. 
  • The reformulation of the provisions that stipulate the administrative and financial independence of the Bank of Albania by aligning them with the provisions stipulated in the Statute of the European Central Bank. 
  • Approve the new organisational structure of the Bank of Albania

The approval of the new organisational structure of the Bank of Albania, in addition to adapting the activity of its units to the new processes and needs of the work and the reporting imposed by the economic developments and the amendments in the banking legislation and broadly, aims at further improving the institution's management and strengthening the internal audit.  The establishment of the specialised unit to monitor and manage the operational risk is a crucial step in this regard.  Also, the new structure aims to strengthen the vertical and horizontal control in compliance with the best practices and models of the European central banks.     

  • Approval of 2016 budget and the medium-term budget, 2016-2018

Both documents, which are important to the well-functioning of the institution, are compiled in compliance with the Law on the Bank of Albania and with the objectives laid down in the medium-term development strategy of the Bank of Albania for 2016-2018, approved early by the Supervisory Council of the Bank of Albania.

The approved budget for 2016 guarantees the accomplishment of the main functions of the Bank of Albania and ensures the normal continuation of the economic, financial and human activity of the institution. The current situation in international financial markets, the economic and financial developments in Albania, current and capital expenditure which are indispensable for the management of assets and human resources are considered in drafting this budget.

The budget for 2016-2018 aims to further perfect the monetary policy and operations framework, strengthen the supervisory capacities of the Bank of Albania, the further development and increase of human resources, maintenance and development of infrastructure, the supply of economy with qualitative banknotes, the careful elaboration of the banknote, as well as the boosting of the communication and transparency to the public. 

These decisions of the Supervisory Council of the Bank of Albania in addition to the medium-term development strategy of the Bank of Albania 2016-2018 are in line with the recommendations and proposals of the international institutions and guarantee the aligning of the Bank of Albania's institutional model with that of the European Union central banks.