Albania Bank Information
Posted by franksupa on March 23, 2007
Bank of Albania is the Central Bank of the Republic of Albania. This status is ratified by the Article 161 of the Constitution and by Law No. 8269, dated 27.12.1997 ” On the Bank of Albania” (pdf, 74kB) that establishes the targets, tasks, relationships with the banking system and the state, organization and management, ownership on the capital, financial statements and profit allocation. Albanian Outsourcing
The Bank of Albania was established during the transition process with the passing to the two-level banking system and with the establishment of the necessary legal space for a central bank, which became official by the adoption of the Law No. 7559 “On the Bank of Albania”, on April 22, 1992. The later reviews on this law were compiled pursuant to both the models of the west countries and the recommendations of international organizations. Albanian Outsourcing
The Bank of Albania is a fully state owned – bank and is accountable to the People’s Assembly of the Republic of Albania. It maintains, in accordance with the Law “On Accounting” and the international standards, accounts and records that should at any time accurately reflect the financial position of the Bank of Albania.Albanian Outsourcing
With the attribute of the monetary and supervisor authority of the country, the Bank of Albania enjoys all the reliable functions of a typical central bank:
- It compiles, approves and implements the monetary policy of the country and employsappropriate monetary instruments to achieve the monetary policy targets;
- It has the exclusive right to issue and circulate the national currency and banknote;
- It keeps and administers the foreign reserve of the Republic of Albania;
- It compiles, adopts and implements the foreign exchange regime and the exchange rate policy;
- It licenses or revokes a license on exercising banking activity and supervises the banking activity to ensure the banking system stability;
- It acts as banker and advisor to, and as fiscal agent, of the Government of the Republic of Albania;
- It serves as bank of second – tier banks;
- It promotes the normal functioning of payments system.
The Supervisory Council headed by the Governor manages the Bank of Albania. Within the competencies established by the law, it is independent of any other power in carrying out the main target of its activity and in exercising the assigned tasks. Every subject is obliged to respect the independence of the Bank of Albania, to not try to have influence on any member of the Supervisory Council for impinging on its obligations to the Bank of Albania, and to not interfere in the activity of the Bank of Albania.Albanian Outsourcing
The head office of the Bank of Albania is located in Tirana. It has 5 branches in the districts of Shkodra, Elbasani, Gjirokastra, Korça, Lushnja.
The Bank of Albania is the central bank of the Republic of Albania. The laws “On the Bank of Albania” and “On banks in the Republic of Albania” are implemented through decisions, regulations, orders and directives issued by the Bank.
The legal acts are published in the Bank’s Official Bulletin. According to the legal framework, their aim is to ensure the banking system stability.
The Supervisory Council, being the highest decision-making and supervising authority of the Bank’s policies, management and operations, approves the Bank’s laws. Its decisions are based on the Bank’s objectives and duties within the powers granted by law.
The Supervisory Council approves acts according to the law and statute of the Bank of Albania whenever necessary or adequate in managing the Bank’s activity.
The banking system in the Republic of Albania has a two-tier structure. In the first tier, it is included the Bank of Albania, whereas in the second one banks and branches of foreign banks and non-bank financial subjects licensed by the Bank of Albania.
The Bank’s activity is conducted in compliance with the Law “On the Bank of Albania”; the banking system activity is conducted in compliance with Law “On banks in the Republic of Albania”.
The Law “On the Bank of Albania” includes provisions providing for the Bank’ powers and its activities, legal independence elements of a central bank in attaining its objectives as defined in the law.
The Law “On banks in the Republic of Albania” defines the core principles of banking activity in the Republic of Albania, the main procedures and rules of licensing and supervision in the Albanian banking system.
The legal independence and the main duties of the Bank of Albania are provided for in a separate article of the Constitution.
One of the fundamental tasks of the Bank of Albania defined by the law “On the Bank of Albania” is to promote and sustain the payment system. In carrying out this task, the Bank of Albania plays an intermediary role in the clearing and settlement of interbank payments.
All commercial banks maintain ALL accounts with the Bank of Albania, through which the Bank of Albania performs payment services to them. Besides cash payments, the Bank of Albania provides non-cash services, such as cheques and payment order clearing, net settlement service, the processing and the settlement of high value payments.
The Bank of Albania is also a participant in the payment system. Through this system the Bank of Albania performs payments for monetary policy purposes and for the account of the Government of Republic of Albania. The Albanian law entitles the Bank of Albania to define the legislation framework on payment systems, by establishing rules and procedures that are obligatory to all financial intermediaries.
The Bank of Albania, not only plays the role of supervising commercial banks as main payment instrument issuers, but also seeks to coordinate their tasks. In this respect the Bank of Albania has established a permanent forum, the National Payments Committee. This Forum approves the interbank agreements that aim to achieve the smooth operation of the payment system in Albania.
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