Banks’ association assures of stability

The Albanian Association of Banks assures the public and all depositors and customers that the functioning and stability of commercial banks in the country has not been infringed.
TIRANA, Sept. 10 – Few days after the arrest of the country’s central bank governor over a Euro 5 million theft scandal, the Albanian Association of Banks representing the 16 commercial banks operating in the country has assured the Albanian banking system remains liquid, well-capitalized and sustainable.
In a statement after the arrest of eighteen Bank of Albania officials over the theft, the Association assures the incident does not affect the operation of commercial banks, whose overwhelming majority of more than 90 percent is foreign-owned.
“Considering the latest developments in the Bank of Albania, the Albanian Association of Banks, on behalf of all its member banks, would like to reassure the public and all depositors and customers that the functioning and stability of commercial banks in the country has not been infringed,” said the Association in a statement.
The Association says it will continue cooperating with the Bank of Albania and other national and international financial institutions to ensure the preservation of the country’s financial stability.
Few days after the arrest of the central bank governor, the Bank of Albania’s supervisory council proposed to Parliament the dismissal of Fullani as Bank of Albania governor and replaced him with Elisabeta Gjoni, the first deputy governor, who will be the acting governor until the election of a new governor.
Ardian Civici, a member of the BoA Supervisory Council has also resigned leaving the decision-making body with five out of nine members, and risking its quorum.
Bank of Albania data show banks’ profits recovered to 5.4 billion lek (Euro 38.3 million) in the first half of 2014, up from 1.5 billion lek (Euro 10.6 million) during the same period last year as non-performing loans slightly dropped to 24.06 percent, down from 24.08 percent in the first quarter of the year and 24.39 percent at the end of the first half of 2013.
The capital adequacy ratio rose to 17.52 percent in the second quarter of the 2014, up from 17 percent in the second quarter of 2013, staying comfortably above the BoA’s minimum requirement of 12 percent.