BoA to exert higher competencies in relation to commercial banks

TIRANA, Oct.25 – The central Bank of Albania (BoA) will set up new rules and regulations that the second level banks will have to abide by, according to the new legal framework approved by the Finance Ministry. The BoA monitoring powers will be extended to cover even banks that do not require its license. Special competencies have been given to BoA in relation to giving licenses to foreign banks which will have to determine with BoA the level of initial capital for the set up process. The new law determines that BoA will create a register of all individuals and subjects which are financed with commercial loans, considered as a radical novelty for the Albanian financial market. Thiat was implemented to reduce the risk of bad loans and increase the monitoring leverage for safer financial institutions. The register will not impede banks to hold their own databases about their customers.