Albania: Financial System Stability Assessment

International Monetary Fund

No 2014/079, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper discusses the Financial System Stability Assessment report on Albania. The IMF report states that the Albanian economy is weak, macroeconomic imbalances are large, and the financial sector faces several risks. Capital-to-asset ratios are sizable, but banks hold large amounts of government bonds that expose banks to sizeable losses in case of a sovereign debt re-pricing and balance sheets have deteriorated as a result of a rapid increase of nonperforming loans (NPLs). The authorities have taken steps to reduce the existing stock of NPLs with technical assistance from the World Bank.

Keywords: ISCR; CR; bank; asset; BOA; loan; liquidity; foreign currency; banking sector; parent bank; credit risk; bank loss; bank capitalization; bridge bank; bank interlinkage; resolution expense; Nonperforming loans; Loans; Mutual funds; Commercial banks; Currencies; Global (search for similar items in EconPapers)
Pages: 95
Date: 2014-03-19
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