BANK OF ALBANIA

PRESS RELEASE
Decisions taken by the Supervisory Council of the Bank of Albania, 3 October 2017

Publication date: 03.10.2017

 

On 3 October 2017, in addition to the decision to keep the policy rate unchanged at 1.25%, as well as rates on overnight deposit and loan facilities at the Bank of Albania at 0.25% and 2.25%, respectively, the Supervisory Council of the Bank of Albania reviewed and decided to:

  • Approve the regulation On the resolution fund and procedures for its management

Pursuant to Law No. 133/2016 On the resolution fund and procedures for its management in banks of the Republic of Albania, the Bank of Albania creates the resolution fund, which is established by the banking sector's contributions and serves for the implementation of instruments and competences of the resolution fund. This fund should be gradually fed and reach 0.5% of all banks liabilities, calculated as the difference between banking sector assets and regulatory capital, by 11 July 2027.

In this context, in addition to establishing the fund, the new regulation sets out the methodology for calculating the banks contributions to the fund and the drafting of procedures for its management in cooperation with the Deposit Insurance Agency.

This regulation is drafted with the technical assistance of the World Bank, and includes the standards set by the European Union countries for the creation of resolution funds (at country level), for the implementation of the relevant European Directive.

  • Grant preliminary approval for conducting an additional financial activity by Intesa Sanpaolo Albania Bank

According to this approval, Intesa Sanpaolo Bank may conduct the additional financial activity of intermediation in insurance, in the quality of the insurance agent.

  • 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 commercial banks as a result of the implementation of the Electronic Regulatory Reporting ERRS). The review allows for the abolition of the reporting obligation in paper by banks, which as of 1 October 2016 report directly to the ERRS.

  • Approve the cooperation agreement with the University of Oxford as an external collaborator of the Bank of Albania

The Supervisory Council approved the one-year cooperation agreement between the Bank of Albania and the University of Oxford. This cooperation will aim to strengthen the analysing and researching capacities at the Bank of Albania, to enhance the knowledge on political and economic developments and challenges that Albania and South-Eastern Europe region are facing.

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