BoA guarantees no risks for financial stability expected

Tirana, March.3 – BoA published its periodical Financial Stability report, determining that there are no apparent risks for the financial system of Albania. The report noted that profits for banks were higher during the second half of last year. Non-performing loans have increased also, while the capital adequacy indicator has deteriorated.
Under-standard loans have seen a steady growth due to the aggressive race between banks to earn a bigger share in this underdeveloped market segment. On the other side, the International Monetary Fund (IMF) called last week for drastic measures to stop the fast credit rise. These would include regulative measures to strictly supervise loan risks as well as to possibly suspend and at least restrain marketing campaigns from commercial banks. IMF expressed concerns also over for absence of customer protection panel inside the BoA structure. According to experts, last year, bank managers were under pressure to produce higher returns from investments and that this factor pushed some toward non-ethical business practices.