Bank of Albania assesses banking health – No added risks, sets the capital increase rate at 0%
The Bank of Albania has set at 0% the rate of countercyclical capital increase for the banking system in our country, positively assessing a number of key factors, as well as signaling that banks operating in the country enjoy very good financial health despite the crisis that is passes the economy and the whole globe. “The countercyclical capital increase is a macroprudential instrument and represents an addition to the basic capital of the first level of banks.
The main objective of this instrument is to strengthen the resilience of the banking system by increasing banks’ capital increases during periods of increasing systemic risk. The countercyclical capital increase is added to the minimum capital requirements for banks. This supplement is set between 0% – 2.5%, but can be set even higher when the risks associated with excessive credit growth or other systemic risks are estimated to be high “- underlines the Bank of Albania in the reasoning of the decision which bears the signature of the Governor of the Bank of Albania.
SCAN
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