Law for saving banks from crisis

Some changes in the law “For the Banks in the Republic of Albania” have arrived these days in Parliament, while yesterday was held the meeting at the Commission of Economy for approving the draft, but the Socialists demanded more time.

Asked by Shqip, the MP Sherefedin Shehu, former Minister of Finances, declared that the new measure comes together with the regulation that the EU has adapted a long time ago, now being in economical levels imposed by the financial crisis.

Two are the main changes: the return of the foreign bank into a branch, and the creation of the “bridge bank” in case of failure.

Turning into a branch

The first point says that the foreign bank that operates in Albania through a license released by the Albanian Bank could turn into its branch, as a shareholder company, by registering the capital given by the foreign bank through signed shares.

The draft law explains that the foreign bank could turn into a local branch by request of the foreign bank itself or when the Albanian Bank sees it necessary.

If the foreign bank will turn into a branch, its capital will be considered as an algebraic sum of the balance levels certified by the experts, such as: given and paid capital, reserves, evaluation differences, undistributed profits and profits and losses of the year.

“Bridge bank”

The law treats other important changes for the security of Banks, such as the fusing and creation of a new subject, called “bridge bank” (a new concept for our system, but known in the EU) that operates in the same way as other second level banks, but that is totally administered by Bank of Albania.

This change foreruns any possible danger, but above all, it is an obligation of the new standards set lately by the EU.

The banking system is currently solid, with well-capitalized assets and a healthy liquid state, which is proved by the increase of the deposits, especially during July.

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