Financial Sector Assessment Update : Albania
Although the Albanian financial system withstood the shocks of 2008 global crisis relatively well, it continues to operate in highly uncertain macroeconomic environment, which triggers increased vulnerabilities in the system. The decline in profita...
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/02/19295947/albania-financial-sector-assessment-update http://hdl.handle.net/10986/17769 |
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okr-10986-17769 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ARREARS ASSET QUALITY ASSET RATIO ASSET VALUE AUCTION AUCTIONS AUDIT COMMITTEES AUDIT STANDARDS BAILIFF BAILIFFS BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BRANCHES BANK CREDIT BANK DEPOSITS BANK HOLDINGS BANK MARKET BANK PROFITABILITY BANK SUPERVISION BANKING LAW BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BID BIDS BOND ISSUING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CASH MANAGEMENT CENTRAL BANK CENTRAL SECURITIES DEPOSITORY CIVIL CODE COLLATERAL COLLATERAL POLICY COLLECTIVE INVESTMENT COMMERCIAL BANKS COMPENSATION FUND CONTINGENCY PLANNING CORPORATE GOVERNANCE CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT GROWTH CREDIT LOSSES CREDIT POLICIES CREDIT RISK CREDITORS CURRENT ACCOUNT DEFICIT DEBT ISSUANCE DEBT ISSUANCES DEBT MARKET DEVELOPMENT DEBT RESTRUCTURING DEBT SECURITIES DEPOSIT DEPOSIT INSURANCE DEPOSITORS DOMESTIC BANKING DOMESTIC DEBT DOMESTIC DEBT MARKET DOMESTIC MARKET DURABLE DURABLE GOODS ENFORCEMENT POWERS EQUIPMENT EQUITY RETURN EUROBOND EXCHANGE RATE EXPENDITURE EXTERNAL BORROWING EXTERNAL DEBT FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RISKS FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL STRESS FINANCIAL SYSTEM FISCAL DEFICITS FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY LOANS FOREIGN CURRENCY RISKS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FRAMEWORK FOR REPO TRANSACTIONS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKETS GOVERNMENT SECURITIES MARKETS GRANT FUNDING HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES INFLATION INSOLVENCY REGIME INSTITUTIONAL CAPACITY INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE MARKET INSURANCE MARKETS INSURANCE PREMIUM INSURANCE PRODUCTS INTEREST RATE INTEREST RATE RISK INTEREST RATES INTERNAL AUDIT INTERNATIONAL FINANCE INTERNATIONAL STANDARDS INVESTMENT BANK INVESTMENT FUND INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT STRATEGIES INVESTOR BASE ISSUANCE LABOR MARKET LABOR MARKETS LEGAL FRAMEWORK LEGAL PROTECTION LENDER LENDER OF LAST RESORT LEVEL PLAYING FIELD LIABILITY LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY RISK LIQUIDITY RISKS LOAN LOAN PORTFOLIO LOAN PORTFOLIO AS COLLATERAL LOAN PORTFOLIOS LOCAL MARKET MACROECONOMIC ENVIRONMENT MARKET ACCESS MARKET BORROWING MARKET FOR GOVERNMENT SECURITIES MARKET PARTICIPANTS MARKET RISKS MARKET VALUE MATURITIES MATURITY MATURITY MISMATCHES MONETARY POLICY MONEY MARKET NATIONAL BANK NON PERFORMING LOANS NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATIONAL INDEPENDENCE OUTSTANDING LOANS PENSION PENSION FUNDS PENSION REFORM PENSION SYSTEM PENSIONS POST OFFICES PRICE DISCOVERY PRIMARY MARKET PROVISIONING RULES PRUDENTIAL REGULATION PRUDENTIAL STANDARDS PUBLIC DEBT PUBLIC DEBT HOLDING PUBLIC DEBT MANAGEMENT REAL ESTATE LOANS REGULATORY AUTHORITY REGULATORY FRAMEWORK REPAYMENT REPO REPO MARKET RESERVES RETAIL INVESTORS RETURN RETURN ON ASSETS RETURNS RISK EXPOSURE RISK FACTORS RISK MANAGEMENT SAFETY NET SECONDARY MARKET SECONDARY MARKET ACTIVITY SECONDARY MARKET PARTICIPATION SECURITIES SECURITIES TRANSACTIONS SETTLEMENT SETTLEMENT RISKS SHAREHOLDERS SHORT-TERM DEBT SOLVENCY SOVEREIGN DEBT SOVEREIGN RISKS STOCK EXCHANGE SUPERVISORY AGENCIES SUPERVISORY AUTHORITY T-BILLS TAX TAX CODE TAX POLICY TAX TREATMENT TERRORISM TRANSACTION TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS UNDERLYING ASSETS VALUATION VALUATIONS WITHDRAWAL WORKING CAPITAL YIELD CURVE |
| spellingShingle |
ACCOUNTING ARREARS ASSET QUALITY ASSET RATIO ASSET VALUE AUCTION AUCTIONS AUDIT COMMITTEES AUDIT STANDARDS BAILIFF BAILIFFS BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BRANCHES BANK CREDIT BANK DEPOSITS BANK HOLDINGS BANK MARKET BANK PROFITABILITY BANK SUPERVISION BANKING LAW BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BID BIDS BOND ISSUING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CASH MANAGEMENT CENTRAL BANK CENTRAL SECURITIES DEPOSITORY CIVIL CODE COLLATERAL COLLATERAL POLICY COLLECTIVE INVESTMENT COMMERCIAL BANKS COMPENSATION FUND CONTINGENCY PLANNING CORPORATE GOVERNANCE CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT GROWTH CREDIT LOSSES CREDIT POLICIES CREDIT RISK CREDITORS CURRENT ACCOUNT DEFICIT DEBT ISSUANCE DEBT ISSUANCES DEBT MARKET DEVELOPMENT DEBT RESTRUCTURING DEBT SECURITIES DEPOSIT DEPOSIT INSURANCE DEPOSITORS DOMESTIC BANKING DOMESTIC DEBT DOMESTIC DEBT MARKET DOMESTIC MARKET DURABLE DURABLE GOODS ENFORCEMENT POWERS EQUIPMENT EQUITY RETURN EUROBOND EXCHANGE RATE EXPENDITURE EXTERNAL BORROWING EXTERNAL DEBT FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RISKS FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL STRESS FINANCIAL SYSTEM FISCAL DEFICITS FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY LOANS FOREIGN CURRENCY RISKS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FRAMEWORK FOR REPO TRANSACTIONS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKETS GOVERNMENT SECURITIES MARKETS GRANT FUNDING HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES INFLATION INSOLVENCY REGIME INSTITUTIONAL CAPACITY INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE MARKET INSURANCE MARKETS INSURANCE PREMIUM INSURANCE PRODUCTS INTEREST RATE INTEREST RATE RISK INTEREST RATES INTERNAL AUDIT INTERNATIONAL FINANCE INTERNATIONAL STANDARDS INVESTMENT BANK INVESTMENT FUND INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT STRATEGIES INVESTOR BASE ISSUANCE LABOR MARKET LABOR MARKETS LEGAL FRAMEWORK LEGAL PROTECTION LENDER LENDER OF LAST RESORT LEVEL PLAYING FIELD LIABILITY LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY RISK LIQUIDITY RISKS LOAN LOAN PORTFOLIO LOAN PORTFOLIO AS COLLATERAL LOAN PORTFOLIOS LOCAL MARKET MACROECONOMIC ENVIRONMENT MARKET ACCESS MARKET BORROWING MARKET FOR GOVERNMENT SECURITIES MARKET PARTICIPANTS MARKET RISKS MARKET VALUE MATURITIES MATURITY MATURITY MISMATCHES MONETARY POLICY MONEY MARKET NATIONAL BANK NON PERFORMING LOANS NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATIONAL INDEPENDENCE OUTSTANDING LOANS PENSION PENSION FUNDS PENSION REFORM PENSION SYSTEM PENSIONS POST OFFICES PRICE DISCOVERY PRIMARY MARKET PROVISIONING RULES PRUDENTIAL REGULATION PRUDENTIAL STANDARDS PUBLIC DEBT PUBLIC DEBT HOLDING PUBLIC DEBT MANAGEMENT REAL ESTATE LOANS REGULATORY AUTHORITY REGULATORY FRAMEWORK REPAYMENT REPO REPO MARKET RESERVES RETAIL INVESTORS RETURN RETURN ON ASSETS RETURNS RISK EXPOSURE RISK FACTORS RISK MANAGEMENT SAFETY NET SECONDARY MARKET SECONDARY MARKET ACTIVITY SECONDARY MARKET PARTICIPATION SECURITIES SECURITIES TRANSACTIONS SETTLEMENT SETTLEMENT RISKS SHAREHOLDERS SHORT-TERM DEBT SOLVENCY SOVEREIGN DEBT SOVEREIGN RISKS STOCK EXCHANGE SUPERVISORY AGENCIES SUPERVISORY AUTHORITY T-BILLS TAX TAX CODE TAX POLICY TAX TREATMENT TERRORISM TRANSACTION TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS UNDERLYING ASSETS VALUATION VALUATIONS WITHDRAWAL WORKING CAPITAL YIELD CURVE World Bank International Monetary Fund Financial Sector Assessment Update : Albania |
| geographic_facet |
Europe and Central Asia ALBANIA |
| description |
Although the Albanian financial system
withstood the shocks of 2008 global crisis relatively well,
it continues to operate in highly uncertain macroeconomic
environment, which triggers increased vulnerabilities in the
system. The decline in profitability, growing non-performing
loans (NPLs), substantial level of euroization, continued
deleveraging of foreign bank subsidiaries and significant
investments in government bonds in the absence of active
secondary market are the main challenges that banking system
faces. Given strong trade and financial links with euro
area, the financial system and real sector in general are
increasingly vulnerable to external shocks as well. Since
2007 the Bank of Albania (BoA) has introduced several
macro-prudential measures to safeguard financial stability
in the country. Higher risk weights and stricter
loan-to-value and debt-to-income ratios were placed on banks
surpassing twin limits on the rate of credit growth and NPL
levels. A second set of macro-prudential policies was put in
place in late 2011 to limit contagion risks and
international spillovers: (i) foreign bank branches were
converted into subsidiaries; (ii) liquidity regulations were
tightened; and (iii) the regulation on related-party
exposure was enhanced. In addition to that, the risk weights
for unhedged borrowers were increased to 150 percent and a
limit of such loans was set to 400 percent of capital.
Overall, financial reporting legislation in Albania has
improved recently and has a high degree of alignment with
the acquis communautaire of the European Union (EU). |
| format |
Economic & Sector Work :: Financial Sector Assessment Program (FSAP) |
| author |
World Bank International Monetary Fund |
| author_facet |
World Bank International Monetary Fund |
| author_sort |
World Bank |
| title |
Financial Sector Assessment Update : Albania |
| title_short |
Financial Sector Assessment Update : Albania |
| title_full |
Financial Sector Assessment Update : Albania |
| title_fullStr |
Financial Sector Assessment Update : Albania |
| title_full_unstemmed |
Financial Sector Assessment Update : Albania |
| title_sort |
financial sector assessment update : albania |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/02/19295947/albania-financial-sector-assessment-update http://hdl.handle.net/10986/17769 |
| _version_ |
1764438358760620032 |
| spelling |
okr-10986-177692021-04-23T14:03:40Z Financial Sector Assessment Update : Albania World Bank International Monetary Fund ACCOUNTING ARREARS ASSET QUALITY ASSET RATIO ASSET VALUE AUCTION AUCTIONS AUDIT COMMITTEES AUDIT STANDARDS BAILIFF BAILIFFS BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BRANCHES BANK CREDIT BANK DEPOSITS BANK HOLDINGS BANK MARKET BANK PROFITABILITY BANK SUPERVISION BANKING LAW BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BID BIDS BOND ISSUING CAPITAL ADEQUACY CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CASH MANAGEMENT CENTRAL BANK CENTRAL SECURITIES DEPOSITORY CIVIL CODE COLLATERAL COLLATERAL POLICY COLLECTIVE INVESTMENT COMMERCIAL BANKS COMPENSATION FUND CONTINGENCY PLANNING CORPORATE GOVERNANCE CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT GROWTH CREDIT LOSSES CREDIT POLICIES CREDIT RISK CREDITORS CURRENT ACCOUNT DEFICIT DEBT ISSUANCE DEBT ISSUANCES DEBT MARKET DEVELOPMENT DEBT RESTRUCTURING DEBT SECURITIES DEPOSIT DEPOSIT INSURANCE DEPOSITORS DOMESTIC BANKING DOMESTIC DEBT DOMESTIC DEBT MARKET DOMESTIC MARKET DURABLE DURABLE GOODS ENFORCEMENT POWERS EQUIPMENT EQUITY RETURN EUROBOND EXCHANGE RATE EXPENDITURE EXTERNAL BORROWING EXTERNAL DEBT FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL RISKS FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL STRESS FINANCIAL SYSTEM FISCAL DEFICITS FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY LOANS FOREIGN CURRENCY RISKS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FRAMEWORK FOR REPO TRANSACTIONS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKETS GOVERNMENT SECURITIES MARKETS GRANT FUNDING HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES INFLATION INSOLVENCY REGIME INSTITUTIONAL CAPACITY INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE MARKET INSURANCE MARKETS INSURANCE PREMIUM INSURANCE PRODUCTS INTEREST RATE INTEREST RATE RISK INTEREST RATES INTERNAL AUDIT INTERNATIONAL FINANCE INTERNATIONAL STANDARDS INVESTMENT BANK INVESTMENT FUND INVESTMENT FUNDS INVESTMENT OPPORTUNITIES INVESTMENT STRATEGIES INVESTOR BASE ISSUANCE LABOR MARKET LABOR MARKETS LEGAL FRAMEWORK LEGAL PROTECTION LENDER LENDER OF LAST RESORT LEVEL PLAYING FIELD LIABILITY LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY RISK LIQUIDITY RISKS LOAN LOAN PORTFOLIO LOAN PORTFOLIO AS COLLATERAL LOAN PORTFOLIOS LOCAL MARKET MACROECONOMIC ENVIRONMENT MARKET ACCESS MARKET BORROWING MARKET FOR GOVERNMENT SECURITIES MARKET PARTICIPANTS MARKET RISKS MARKET VALUE MATURITIES MATURITY MATURITY MISMATCHES MONETARY POLICY MONEY MARKET NATIONAL BANK NON PERFORMING LOANS NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATIONAL INDEPENDENCE OUTSTANDING LOANS PENSION PENSION FUNDS PENSION REFORM PENSION SYSTEM PENSIONS POST OFFICES PRICE DISCOVERY PRIMARY MARKET PROVISIONING RULES PRUDENTIAL REGULATION PRUDENTIAL STANDARDS PUBLIC DEBT PUBLIC DEBT HOLDING PUBLIC DEBT MANAGEMENT REAL ESTATE LOANS REGULATORY AUTHORITY REGULATORY FRAMEWORK REPAYMENT REPO REPO MARKET RESERVES RETAIL INVESTORS RETURN RETURN ON ASSETS RETURNS RISK EXPOSURE RISK FACTORS RISK MANAGEMENT SAFETY NET SECONDARY MARKET SECONDARY MARKET ACTIVITY SECONDARY MARKET PARTICIPATION SECURITIES SECURITIES TRANSACTIONS SETTLEMENT SETTLEMENT RISKS SHAREHOLDERS SHORT-TERM DEBT SOLVENCY SOVEREIGN DEBT SOVEREIGN RISKS STOCK EXCHANGE SUPERVISORY AGENCIES SUPERVISORY AUTHORITY T-BILLS TAX TAX CODE TAX POLICY TAX TREATMENT TERRORISM TRANSACTION TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS UNDERLYING ASSETS VALUATION VALUATIONS WITHDRAWAL WORKING CAPITAL YIELD CURVE Although the Albanian financial system withstood the shocks of 2008 global crisis relatively well, it continues to operate in highly uncertain macroeconomic environment, which triggers increased vulnerabilities in the system. The decline in profitability, growing non-performing loans (NPLs), substantial level of euroization, continued deleveraging of foreign bank subsidiaries and significant investments in government bonds in the absence of active secondary market are the main challenges that banking system faces. Given strong trade and financial links with euro area, the financial system and real sector in general are increasingly vulnerable to external shocks as well. Since 2007 the Bank of Albania (BoA) has introduced several macro-prudential measures to safeguard financial stability in the country. Higher risk weights and stricter loan-to-value and debt-to-income ratios were placed on banks surpassing twin limits on the rate of credit growth and NPL levels. A second set of macro-prudential policies was put in place in late 2011 to limit contagion risks and international spillovers: (i) foreign bank branches were converted into subsidiaries; (ii) liquidity regulations were tightened; and (iii) the regulation on related-party exposure was enhanced. In addition to that, the risk weights for unhedged borrowers were increased to 150 percent and a limit of such loans was set to 400 percent of capital. Overall, financial reporting legislation in Albania has improved recently and has a high degree of alignment with the acquis communautaire of the European Union (EU). 2014-04-11T18:29:24Z 2014-04-11T18:29:24Z 2014-02 http://documents.worldbank.org/curated/en/2014/02/19295947/albania-financial-sector-assessment-update http://hdl.handle.net/10986/17769 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Economic & Sector Work Europe and Central Asia ALBANIA |