The capitalization of the banking sector continued to increase in 2025, reflecting both the positive financial performance of the sector and the ongoing rise in regulatory requirements by the Bank of Albania. Statistics from the Bank of Albania showed that at the end of last year, this indicator reached nearly 20.5%, the highest level in its history.

The capital adequacy ratio measures the value of the banking sector's regulatory capital in relation to its assets, weighted by the relevant risk coefficients. It is also the most important regulatory indicator for the banking sector, as it demonstrates the ability of banks to absorb potential losses from activity risks using their capital.

Detailed data by banks show that the level of capital adequacy remains at generally high levels and above the basic levels required for all banks in the sector.

At the end of 2025, the highest capital adequacy ratio was reported by Intesa Sanpaolo Bank Albania, with 26.3%. The Italian group's bank has a regulatory capital structure composed entirely of tier 1 capital and has distributed few dividends in recent years. On the other hand, Intesa Sanpaolo has a relatively low value of risk-weighted assets, compared to banks of similar size, mainly due to a lower weight of loans in the balance sheet structure.

It is followed by OTP Bank Albania, with a capital adequacy ratio of 23.23%. OTP Albania has never distributed dividends after the acquisition by the Hungarian group, and this has helped in the continuous growth of share and regulatory capital.

It is followed by Raiffeisen Bank Albania with 21.23%, followed by First Investment Bank of Albania (Fibank), with 20.98%, and BKT, with 20.74%. The above banks have a capital adequacy ratio above the sector average.

Next are American Investment Bank (ABI Bank), with 19.61%, followed by Credins Bank, with 18.99%, Union Bank, with 18.05%, ProCredit Bank Albania, with 17.43%, Tirana Bank, with 17.27%, and the United Bank of Albania (UBA), with 14.53%.

High levels of capital adequacy make banks more able to withstand losses from possible negative developments in the future. But, on the other hand, very high capital requirements have had an impact on reducing the return on investment for shareholders and, in theory, make the banking sector less attractive to invest in.

The level of capital adequacy also reflects special requirements that apply to specific banks in the sector. Capitalization requirements are even higher for a specific group of banks, classified as systemically important. Banka Kombëtare Tregtare (BKT), Banka Credins, Banka Raiffeisen, and Banka Intesa Sanpaolo have additional additions to the capital adequacy ratio, ranging between 0.5% and 1%.

In addition, systemically important banks must meet the required addition to the capital adequacy ratio related to the minimum requirement for regulatory capital instruments and accepted liabilities (MREL) from 1 January 2024.