La Bank of Albania is expected to strengthen the supervision rules for banks and non-bank financial institutions in order to monitor partners and shareholders of banks and other financial institutions, while new control measures will be adopted and implemented for shareholders who apply for new licenses.
During its last executive meeting, as also reported by the Albanian media, the Bank of Albania announced that it had adopted a package of regulations to implement the recommendations of the Moneyval Expert Report on the prevention of money laundering and on the financing of terrorism.
Through these changes, a greater emphasis is given by the Bank of Albania to the current process of monitoring shareholders and partners of non-bank banks and financial institutions, as well as executive bodies of these institutions as well as savings and loan associations.
The package includes changes in the regulation on the license and the implementation of activities by banks and branches of foreign banks in Albania, non-bank financial institutions, savings and loan associations and their trade unions, currency exchange offices etc. Similarly, changes are envisaged in the regulation "on the control of risk in the activities of non-bank financial institutions" in terms of the prevention of money laundering and terrorist financing.
The approved amendments consist mainly of measures to strengthen the Bank of Albania's requirements for financial institutions that apply for a license and for institutions (and shareholders) already in possession of a license during the process of an influential participatory change and / or a legal reorganization. During its last meeting, the Bank also adopted various acts under the Inter-institutional Plan for measures to reduce non-performing loans.
One of the main acts adopted was the regulation "on extra-judicial treatment of banks and debtors in financial difficulty", also known as the "Tirana approach", the drafting of which falls within the framework of the achievement of the Bank's commitments. Albania in the Inter-institutional Plan. This regulation was prepared in close cooperation with experts from the World Bank (within the project Finsac ) and represents the conclusion of a measurement package undertaken by the Bank of Albania to direct non-performing loans in the country.
The new regulation focuses on facilitating financial recovery by long-term debtors who are exposed to more than one bank. The same regulation provides for the creation of a common platform between banks to find sustainable solutions for the debtor. The other change adopted in the area of credit risk countering is the reduction in the period of depreciation of loans lost by banks and the strengthening of credit restructuring criteria by banks, taking into consideration the practices followed in EU member states .
Link to the official website of the Bank of Albania
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