IMF and World Bank assess Albania’s financial sector as Sejko meets joint mission

Bank of Albania Governor Gent Sejko met on Monday with representatives of the joint International Monetary Fund and World Bank mission wrapping up the Financial Sector Assessment Program (FSAP) for Albania. The meeting was also attended by senior officials of the Financial Supervision Authority, the Deposit Insurance Agency and the Ministry of Finance.

The assessment, requested by the Albanian authorities and coordinated by the Bank of Albania, analysed the resilience of the financial system, its ability to withstand risks and potential shocks, and the effectiveness of the regulatory and supervisory framework. The process examined, among other things, financial crisis management, systemic risk, micro- and macroprudential supervision, cyber protection, financing in the digital age, support for small and medium-sized enterprises and capital market development.

FSAP representatives praised the progress Albania has made since the previous assessment, conducted in 2013–2014. According to the latest assessment, the Albanian financial system is now characterised by healthier institutions, a more diversified sector, modernised payment infrastructure, expanded financial intermediation and greater use of technology in the delivery of financial services.

Legal and regulatory changes were also in focus, and according to the FSAP they have been brought significantly closer to European Union standards. The mission stressed, however, that the financial system faces new challenges, so the assessment’s recommendations aim to strengthen its resilience, improve risk management and increase the financial sector’s role in financing the real economy.

Governor Sejko thanked the IMF and World Bank experts for their work, describing such a professional and independent assessment as important at this stage of the Albanian financial system’s development. Sejko also stated the Albanian authorities’ commitment to analysing the FSAP recommendations and using them in the process of further reforms of the financial system.

In conclusion, the parties assessed the process as successful and expressed readiness to continue cooperation and technical assistance in several of the areas covered by the assessment.