TIRANA, April 3 /ATA/ – The Bank of Albania’s Supervisory Council on Thursday reviewed and approved the Financial Stability Statement and Report for the second half of 2024.
Central Bank assesses that the sector carried out its activity in a sustainable manner.
Deposits and loans expanded, despite the dampening effect of exchange rate appreciation; the capitalisation of the activity remained at good levels; while profit improved considerably. Risks to the activity are assessed at contained levels and overall, banking system appears resilient to withstand them. However, challenges to banking and financial activity are estimated to edging up, for banks should make use of their better financial performance in improving the infrastructure of risk management.
According to BoA, economic developments during the period were positive, driven by the good performance in consumption and investments, as well as the sharp performing tourism sector.
Economic growth was accompanied by a reduction in the unemployment rate and an increase in both employment and wages. Fiscal policy maintained a consolidating trend over the most part of the year given the considerable growth in fiscal revenues. Inflationary pressures have been declining, driving the Bank of Albania to ease its monetary policy. Risk to the economic and financial developments in Albania remain present and are mainly related to the uncertainty and the impact of international developments pass through. Against this backdrop, it remains important that the economic and financial policies of public authorities, as well as the actions of market participants, aim to preserve financial reserves that support the smooth functioning of their activity.
The Financial Stability Report is an important periodic document prepared by the Bank of Albania whose main purpose is to identify and assess risks to the financial system and its infrastructure.
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