TIRANA, April 1 /ATA/ The Supervisory Council of the Bank of Albania today approved the financial stability statement and report for the second half of 2025.
The financial stability report is one of the Bank of Albania’s key periodic documents, primarily aimed at identifying and assessing the risks facing the financial system and its infrastructure.
The Bank of Albania considers that during the second half of 2025, the financial system functioned steadily.
Growth in the banking sector accelerated, mainly supported by rising deposits and capital, which were predominantly channelled into lending and securities investments.
The banking sector recorded a positive net financial result, albeit slightly lower than that of the previous year.
Risks originating from the linkages between the banking sector and other parts of the financial system, as well as those inherent to the banking sector itself, are considered to be at manageable levels. Financial resilience indicators and stress tests indicate that the banking sector is stable in relation to the identified risks. However, it remains essential for banks to reinforce their risk prevention and management frameworks, routinely assess their resilience, and sustain appropriate capitalisation levels.
Economic developments during the period were positive, driven by strong consumption and investment activity, as well as the consistently robust performance of the tourism sector.
Economic growth was accompanied by a reduction in the unemployment rate and increases in both employment levels and earnings growth. Fiscal policy maintained a prudent stance, contributing to a continued decline in the public debt-to-GDP ratio. Inflationary pressures remained contained, staying below the Bank of Albania’s target.
Economic and financial risks persist, largely due to international uncertainty, making it essential for public authorities and market participants to safeguard financial reserves and manage investments effectively.
The Supervisory Council of the Bank of Albania approved several amendments to the Bank’s regulations concerning the licensing of banks, non-bank financial institutions, payment institutions, and electronic money institutions, as well as savings and credit associations, and the framework for preventing money laundering and terrorist financing.
The approved amendments aim to enhance and further strengthen the regulatory and supervisory framework in line with international standards for effective oversight, primarily focusing on implementing the recommendations of Moneyval experts.
Specifically, the amendments clarify and incorporate the concepts of “good reputation” and “beneficial owner,” reinforce integrity and reputation requirements for capital holders—including beneficial owners—and establish the obligation to consult United Nations and European Union lists to prevent money laundering and the financing of terrorism.
Furthermore, the amendments seek to provide greater clarity on regulatory requirements concerning application deadlines and the right to resubmit licensing requests, enhance documentation standards for the assessment of the suitability of ownership and governance structures, and establish a formal framework for managing changes in the capital structure of non-bank financial institutions, including the acquisition, sale, or transfer of controlling interests, as well as the suspension or revocation of licenses.
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