Strengthening Banking Regulations Compliance in Albania: A New Era for Licensed Institutions

Tirana, Albania - The Bank of Albania has recently issued a series of sub-legal acts aimed at curbing risk-taking by licensed banks and financial institutions operating under its license. This move is designed to strengthen banking regulations compliance in the country.

Authority to Issue Regulations

Under Albanian laws, the Bank of Albania has the authority to issue regulations, guidelines, decisions, and orders that must be implemented by all banks and other financial institutions operating under its license.

Supervisory Framework

The set of regulatory acts constitutes the country’s supervisory framework, designed to limit the risks taken by these institutions as they conduct their daily business. The Basel Committee Documents, European Union Directives, Regulations, and Guidelines serve as the main blueprint for compiling this regulatory framework.

Key Regulatory Acts

Among the regulatory acts approved are:

• Licensing Regulations: These govern the process of granting licenses to financial institutions.
• Supervisory Acts: Aimed at ensuring these institutions comply with relevant rules and regulations.
• General Regulatory Acts: Outline overarching principles governing the country’s banking sector.

These regulatory acts are designed to provide a robust framework for licensed institutions, helping them operate in a safe and sound manner while minimizing risk. The Bank of Albania’s efforts demonstrate its commitment to maintaining financial stability in Albania.