The draft law aims to align Albania’s rules with European Union standards and strengthen oversight of groups that include banks, insurers and investment companies.

Under the proposed rules, a group would be classified as a financial conglomerate if it includes at least one bank and one insurance or investment company and meets legally defined thresholds for activity across different financial sectors.

Such groups would face additional supervision at group level alongside oversight of their individual institutions. Regulators would focus on capital adequacy, group-wide risks, transactions between companies within the group and the way those risks are managed.

The approach is intended to prevent the same capital from being used for multiple purposes and limit the risk of financial problems at one company spreading to other entities within the group.

The draft also calls for closer cooperation between the AMF and the Bank of Albania to identify financial groups, exchange information and coordinate supervision. A designated authority would be responsible for coordinating oversight of each group.

The initiative is based on the European Union directive on the supervision of financial conglomerates and is intended to strengthen financial stability, improve transparency and enhance protection for customers and investors.

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