TIRANA, April 3 /ATA/ – The Supervisory Council of the Bank of Albania adopted Wednesday the Financial Stability Report, an important periodic document prepared by the central bank to identify and assess risks to the financial system and its infrastructure.
Central bank said that the banking sector’s activity improved in the second half of 2023. Deposits and loans expanded despite the dampening effect of exchange rate appreciation, the activity capitalized at good levels while profit improved significantly. Risks to the activity are assessed as contained and, overall, the resilience of banking activity against them has strengthened. However, risks to banking activity are always present. In this view, banks should use the better financial performance to improve the risk management infrastructure.
“Economic developments during the period were positive, affected by the good performance of consumption and investments, and particularly by the improvements in the current account of the balance of payments. Economic growth was accompanied by a reduction in the unemployment and an increase in both employment and wages. Fiscal policy maintained a consolidating trend as fiscal revenue grew significantly. Inflationary pressures have been declining, but inflation rate persisted above the Bank of Albania’s target. The response of the monetary policy in the future will be based on the current data and will reflect the analysis of the risk factors to the inflation performance. Risks to the economic and financial developments in Albania remain present. They are related mainly to the uncertainty surrounding the geopolitical developments. In these circumstances, it is important that economic policies use this favorable period in regard to the economic and financial developments in the country, to consolidate achievements and to further reform the economy aiming to achieve a more sustainable and balanced development in the future,” central bank said.
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