Research Papers

This paper describes the evolution of the macro stress testing of the banking sector applied in the Bank of Albania over the past 15 years. It gives details about the stress testing methodologies used over this horizon, with emphasis on the last two approaches: the one used in 2013-2021 and especially the one used currently, i.e. a new approach that started in 2022.

This paper provides a simple new empirical alternative approach, which is based on daily data for the period 2008-2020 and various binary indicators, and it builds a set of econometric models that can be easily used to predict short-term and medium-term liquidity needs in the banking system over a chosen time horizon.

In the absence of a treatment or a vaccine, the economic fallout due to a pandemic is undisputable either due to the spread of the pandemic and lives lost or due to the lockdowns imposed to limit the spread.

The scope in this study is to assess the impact of unconventional monetary policy (UMP) of European Central Bank (ECB) on the dynamics of the Albanian economy.