BoA’s package of measures shows its effects in banks system

Last year, Bank of Albania adopted a package of measures for the encouragement of lending that in essence aims to increase the financing of country’s economy and to restrict the bank’s investments outside Albania.

Despite the efforts, these measures have not had the expected impact to maintain the increase of loans but the report of BoA shows that all banks which have followed these politics, have profited from this package of measures. This package stipulated that banks would not coverage with capital the increase of lending for domestic  economy from 4% to 10% and in the other side imposed obligations for capital for investments outside the country.

The package of measures stipulated that banks will not cover the capital required for growth of credit to the domestic economy by 4% to 10%, while put more obligations for placements and capital investments abroad.  At the system level, measurements at the end of 2013 show that the capital adequacy ratio is 0.34% points lower than if it was calculated without counting the impact of the measures.

News source: Scan Tv

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