Tirana Approach: BoA expected to draft new plan for non-performing loans
The Bank of Albania will draft this year a new package of measures to reduce non-performing loans.
In the mid-term development strategy for the period 2018-2020, the Central Bank announces that within this year a new package called “Tirana Approach” will be developed.
This package will aim at a further reduction of non-performing loans and it will emerge three years after the plan of measures that started to be implemented in 2015.
The package of three years ago has gradually yielded positive effects on the decline in the ratio of non-performing loans, which at the end of last year fell to 14.3%, the lowest level in the last seven years.
In addition to a new package aimed at reducing non-performing loans, the Bank of Albania has announced a strengthening of supervision over licensed entities for financial services activities.
According to the Central Bank, entities licensed and supervised by the Bank of Albania should be prepared for a regulatory framework with more stringent requirements and increased reporting obligations.
The document notes that certain actors of the financial system are facing unfavorable dynamics by reviewing their business models or their presence in Albania.
The Bank of Albania considers that possible structural changes and further consolidation of the banking sector, through mergers or acquisitions, highlights the need for monitoring and careful oversight.
SCAN
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