BoA proposes new rules on how banks are managed

The Bank of Albania has prepared new draft regulations to strengthen the governance of banks and the independence of the control structures.

The regulation on the internal control system proposes that the chairman of the Audit Committee within the bank is also a member of the Steering Council.

To prevent conflicts of interest, this official should not have a private interest relationship with the bank’s shareholders or executives.

At the same time, members of the Audit Committee may be members of the Steering Committee at the same time, but this will not be mandatory, as in the case of the chairman.

The Bank of Albania has also proposed several amendments to the regulation on the basic principles of bank management and the appointment of their administrators.

Changes in the regulation focus mainly on strengthening the independence and importance of the risk management unit within the bank.

Meanwhile, among the criteria for the appointment of bank administrators, apart from those of ethical and professional nature, a special provision is added: banks must prove that the proposed administrator has no problems with loans.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.