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Financial Stability

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The Albanian financial system is a relatively new reality. Over the past years, important banking groups and large insurance companies have entered into the Albanian financial market. 

The banking system dominates the Albanian financial system, accounting for 91.4% of the total financial assets. Thus, stability in our banking system implies stability in the entire financial system.

When both the financial and monetary systems function well and the financial intermediaries efficiently transfer funds from those having excess of funds to those suffering from lack of funds, we may say that the financial situation is stable.

That means the financial stability is a requisite for development and normal functioning of an economy, as it establishes a climate of confidence, in which individuals take more sound decisions. 

The central bank is responsible for guaranteeing that the banking system in particular and the financial one in general are stable and sound. It maintains financial stability by assessing potential risks and the weak points of the system through banking supervision.

To maintain the stability of the financial system, the Bank of Albania bank is supported by the Albanian Financial Supervisory Authority, which oversees securities, insurances and pension funds.

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