2007 Supervision Annual Report Supervision Annual Report 2007 B a n k o f A l b a n i a SUPERVISION ANNUAL REPORT 2 0 0 7 PB Bank of Albania Bank of Albania 2007 Supervision Annual Report Supervision Annual Report 2007 If you use data from this publication, you are requested to cite the source. Published by : Bank of Albania, Sheshi “Skënderbej”, No., Tirana, Albania Tel : 55-4-222220; 225568; 225569; Fax : 55-4-222558 www.bankofalbania.org For enquiries relating to this publication, please contact: Publications Section, Foreign Relations, European Integration and Communication Department e-mail:
[email protected] Printed in: 000 copies 2 Bank of Albania Bank of Albania 2007 Supervision Annual Report Supervision Annual Report 2007 CONTENT S A. DOCUMENT “ON SUPERVISION MISSION” 7 B. REGULATORY FRAMEWORK AND LICENSING PROCESS 9 . Legal and regulatory framework 9 2. Licensing C. ON-SITE SUPERVISION 7 . Activity of the on-site supervision function 7 2. Cooperation with other authorities 7 . Problems observed during the examinations 8 D. BANKING SYSTEN AND NON-BANK DEVELOPMENTS 22 . Economic environment 22 2. Main banking system highlights 24 . Banking system structure 26 4. Managing banking activity risk 5. Capital adequacy 40 6. Profitability indicators 4 7. Non-bank financial institutions 49 E. CREDIT REGISTRY 52 . Overview 52 2. Main characteristics of the Credit Registry 5 . Reports and information designed by the Credit Registry 54 F. OTHER 55 . Housing loans. Financial stability implications 55 2. Albanian banking system position related to IFRS 60 G. AnneX 66 Annex . Organisational chart of the Banking Supervision Department (dated December 31, 2007) 66 Annex 2.