Bank of Albania: 22 non-bank financial institutions are well-capitalized

Bank of Albania’s report for 2014 says that in Albania operate 22 non-bank financial institutions whose total assets reached the amount of ALL 32.23 billion, equal to the 2.5% of the total assets of the banking system. Comparing their performance to 2013, the report says that the assets of these financial institutions increased significantly by 7.36% or ALL 2.22 billion in annual terms. Their loan portfolio is equal to 56.3% of their total assets.

These subjects are partially financed by lending and their own capital. The lenders are mainly banks (40.2%), non-residential financial institutions (37.4%) and other residential sources (11.52%). The annual report issued by the Bank of Albania cites that the majority of these financial institutions have been well capitalized during 2014. The role of the Bank is to monitor the capital of these institutions and to provide advices in order to maintain the level of assets in the required levels.

Bank of Albania issued its Annual Supervisory Report for 2014, a deep analysis of the banking system and its performance during 2014 and the measures taken by the Bank as a supervisory actor in maintain a well-capitalized banking system and to erase the nonperforming loans of second tier banks.

News source/photo credits: ATA