TIRANA, Oct 4 /ATA/ The Director of the Supervision Department at the Bank of Albania, Denis Derralla, stated in an interview with the media that the changes made by the Bank of Albania to the regulation “On the management of risk in the activities of non-bank financial institutions” focus on managing credit risk from these institutions in terms of consumer protection.
Derralla said, “The changes are part of a package that brings about an improvement to the situation for consumers regarding lending.”
According to him, the introduction of certain requirements in the regulation compels non-bank financial institutions to approve loans based on a financial analysis and not merely through documentation presented by the individual.
“The regulation lays down the way in which the financial analysis must be conducted, outlines the indicators that the non-bank financial institution must consider at the time of loan approval, and does not allow the institution to grant loans to those who do not have the ability to repay,” he said.
Derralla emphasized that the changes foresee the preparation of a “blacklist” for all individuals who are not eligible for loans, and this “blacklist” serves to inform everyone who is excluded from borrowing by all financial institutions and banks.
“A new aspect is that a consumer cannot have two consumer loans. Through the new rules, we improve lending terms for consumers and allow institutions to extend loans to those who are not supported by banks,” Derralla highlighted.
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