Two mayor private lending institutions have increased their active funds in the past year, according to a report of the financial system evaluation by the World Bank and the IMF in the previous year. These two funds count about 33 thousand members and assets worth EUR 470 million. But, according to the report issued in the past year, there is lack of regulations by the government in the aspect of the sufficiency of liquidity of these lending institutions.
Following the recommendations of the report compiled by the World Bank and the IMF, the Financial Surveillance Authority approved on the end of June of this year a regulation for the administration of the liquidity for investment funds.
According to the regulation, the investment funds must maintain certain obligatory levels of high quality liquid assets, including the assets which have shown stable liquidity within years in a normal or troubled market situation. The regulation also predicts the technical criteria set to define which the high quality liquid assets are. An investment fund must obtain as high quality liquid assets the same amount as the influx of money that is predicted to outcome per month.
Investment funds have been successful in the Albanian market in the past years and the government vows to license other lending institutions in the upcoming years.
News source: Scan TV
Photo credits: 401 K / Flickr