The Albanian Parliament has called on the Bank of Albania to strengthen its supervision of banks with high exposure to large businesses and the real estate sector. This was one of the main points of a draft resolution approved by the Economy Committee.
The resolution highlights the need to analyze and review the concentration of lending in specific sectors in order to prevent risks to the stability of the banking system.
Lawmakers raised concerns over the high level of lending directed toward infrastructure projects, particularly in road, port and airport transport, arguing that delays or failures in these projects could pose risks to the banking sector.
Another issue discussed was the exchange rate. Opposition lawmakers called for measures to support sectors affected by the depreciation of the euro, proposing special protection mechanisms for exporters.
During the discussions, Democratic Party MP Eno Bozdo questioned the Bank of Albania’s interventions in the foreign exchange market, while MP Igli Cara called for a dedicated study and concrete measures to assist sectors suffering losses due to the euro’s decline.
“It is inconceivable for the Bank of Albania to intervene in the foreign exchange market with a massive intervention of more than €1 billion, of which an estimated €800–900 million was aimed at keeping the euro’s value suppressed. At this point, it has moved beyond its legal function,” said Bozdo.
“Could the Bank of Albania, within a month, prepare a study and possibly come up with concrete proposals identifying sectors that need support and where policymakers should intervene? Support could be provided through subsidies. From around 140 lek per euro in 2014–2015, the rate has fallen to 94 lek today. It is a dramatic decline,” Cara said.
The Economy Committee also approved a draft resolution containing 15 recommendations for the Financial Supervisory Authority, focusing on increasing transparency, advancing digitalization, developing the insurance market and reviewing the bonus-malus insurance scheme.
“There is no balance in the bonus-malus regulation. The balance has shifted in favor of the companies. A price reduction of 2% to 5% is ridiculous and clearly reflects the fact that risk factors are not working in favor of citizens,” said MP Erion Braçe.
Cara also called for a broader range of insurance products.
“Insurance companies do not offer flood insurance. It would be beneficial to have products covering floods, life insurance, fire insurance and other risks, because we cannot focus solely on motor vehicle insurance,” he said.
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