Albania: Financial System Stability Assessment
IMF Staff Country Reports, March 19, 2014
Source details
- Canonical URL
- Albania: Financial System Stability Assessment
Other formats
Bibliographic details
- Published: March 19, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484338797.002
Key findings
- The Albanian economy is weak.
- Macroeconomic imbalances are large.
- The financial sector faces several risks.
- Capital-to-asset ratios are sizable.
- Banks hold large amounts of government bonds that expose banks to sizeable losses in case of a sovereign debt re-pricing.
- Balance sheets have deteriorated as a result of a rapid increase of nonperforming loans (NPLs).
Nonperforming loans and policy actions
- Rapid increase in NPLs has materially weakened bank balance sheets.
- The authorities have taken steps to reduce the existing stock of NPLs with technical assistance from the World Bank.
Subject coverage and keywords
- Subject: Banking, Commercial banks, Currencies, Financial institutions, Loans, Money, Mutual funds, Nonperforming loans
- Keywords: asset, bank, bank capitalization, bank interlinkage, bank loss, banking sector, BOA, bridge bank, Commercial banks, CR, credit risk, Currencies, foreign currency, Global, ISCR, liquidity, loan, Loans, Mutual funds, Nonperforming loans, parent bank, resolution expense
Content in this bundle
- Albania: Financial System Stability Assessment; IMF Country Report 14/79; February 14, 2014