2007 Financial Stability Report

The analysis of the characteristics of risks in the financial activity of Albania indicates an increased general level of risk. The risk spectrum has expanded during 2007 and the same tendency is expected to be maintained during the present year as well. This performance attributes to the further growth of investments of the financial system in assets with higher return (and risk), to the domestic developments in the economy, to its opening and to the gradual integration with the regional and global financial markets. Nonetheless, based on the analysis of the regulatory authorities, the financial system is presently protected from risks arising from internal developments and regional and global ones. In this context, no risks that may be materialized or which may harm abruptly and severely the activity of the financial system are identified. Although the risks level is manageable it is recommended to the regulatory authorities of the financial market, the financial institutions and to the public at large to enhance their supervisory prudence.