Albanian Bank, stronger supervision on banks

An important aspect of the draft-law “For the Banks”, approved last week by the government, is returning the foreign bank into a branch of the department, in order to increase independence from its mother bank, so that it will be easier for the Albanian Bank to control it. Naturally, turning into a branch makes the foreign bank less affected by the crisis that the mother bank is experiencing in the current situation.

According to the Albanian Bank, the actual system is solid and of good financial health, and this is shown by the increasing deposits. Another important change is related with the creation of “bridge banks”, which temporarily take the managing functions of the problematic bank in a liquidation state.

These “bridge banks” are specially created by the Albanian Bank for administering the failing bank. However, in the relation that accompanies the draft-law, the Albanian Bank, together with the Ministry of Finances explains that the changes come as consequence of the conditions set by the EU for strengthening the control, and as a precaution to possible dangers.

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