BoA inspections unveil risk weaknesses

TIRANA, Aug 14 – Inspections carried out by Albania’s central bank have shown several weaknesses in terms of credit risk management practices, exposure to large risks, liquidity risk, customer transparency, etc. The main purpose of the on-site examinations carried out during 2011 was to make a full assessment of banks’ risk profile. In addition, examinations were initiated as a result of the emergence of specific phenomena in the licensed institutions. During 2011, the Bank of Albania carried out 6 full-scope examinations and 2 partial examinations of banking institutions.
However, the central bank says that the banking system has generally operated in accordance with the legal, regulatory and supervisory framework requirements.
Expansion of the banks’ network within the country continued in 2011, pursuing the low rates observed over the past two years. As at end-2011, there were 528 branches and agencies of foreign banks operating within the territory of the Republic of Albania, and one branch operating abroad. The banking system has responded to rapid urbanization of cities and their suburban areas and to the awareness of people to carry out financial transactions through banking channels, by providing access to clients through establishment of bank branches and agencies across the country.