Banking Supervision Annual Report 2003

The banking system situation during 2003 was stable. The financial result of the system was positive and increased in comparison with the past years. The banking system is capitalized well, while certain banks have experienced reduction of the base capital value under the minimum value required by the license level, mainly due to the appreciation of the lek exchange rate and business insolvency. The Bank of Albania through the Supervision Department closely supervises the banking system. The supervision process has undergone improvements thanks to a better conceiving of the cooperation with the banking industry, and to the implementation of some steps provided in the framework of supervision development plan. However, these efforts should continue so as to be turned into an accepted supervision standard.