The latest developments of the banking system in Albania and Bank of Albania’s incentives in improving the sector have become a discussion theme at the annual meeting of the Governors’ Club in Tbilisi, Georgia. Bank of Albania Governor Gent Sejko has participated in the 34th edition of Governors’ Club meeting where State Banks’ Governors of countries in Central Asia, Black Sea region and Balkan met and discussed on current developments and hot topics related to the baking systems in respective countries.
At the meeting, Sejko presented the latest developments of the banking system in Albania and the regulations / measures proposed and implemented by the Bank of Albania, which serves as a policy maker and surveillance institution for the banking system in Albania.
The Bank of Albania’s Governor discussed about the macroeconomic polices the Bank has followed in the past year and the preliminary measures taken by the Bank of Albania in decreasing the level of nonperforming loans and in increasing lending. Currently, Bank of Albania is keeping the lowest interest rate in the history of only 2% as an easing policy for the banking system in the country.
Sejko declared at the meeting that “Bank of Albania has made several changes in the regulative acts which aim the increase of lending, the decrease of financial intermediation costs and the encouragement of the restructuration process of nonperforming loans by private banks. These and other discussion themes related to the banking system in Albania were discussed at the meeting by Sejko and other countries’ state governors.
The discussions of the Governors headed by the Georgian National Bank Governor Giorgi Kadagidze were focused on the high level of dollarization phenomenon and its effects in Central Asia and Balkan countries’ economies. The participants also shared similar experiences in being charge of state surveillance institutions which are responsible for ensuring and maintaining a stable financial banking system in a country.
The Governors’ Club was created in 1998 by the Republic of Turkey Central Bank and currently counts 23 members which are: Albania, Turkey, Romania, Bulgaria, Greece, Bosnia-Herzegovina, Macedonia, Serbia, Montenegro, Russia, Ukraine, Israel, Azerbaijani, Armenia, Georgia, Kazakhstan, Kirgizstan, Moldova, Tajikistan, China, Czech Republic, Poland, Croatia and Slovenia.
News source/photo credits: ATA