The Supervisory Council of the Bank of Albania reviewed and approved on Thursday the Financial Stability Report Statement for the second half of 2024.

The Bank of Albania assesses that in the second half of 2024, the activity of the financial sector development was stable.

Deposits and loans expanded, and despite the mitigating effect of the exchange rate appreciation, the capitalization of the activity remained at good levels, while profit improved significantly. The risks of the activity are assessed at controlled levels and the banking sector as a whole is stable against them. However, the challenges for banking and financial activity are assessed to be increasing, so better financial performance should be used by banks to improve the risk management infrastructure.

According to the Bank of Albania, economic growth was accompanied by a decrease in unemployment and an increase in employment and wages. Fiscal policy maintained a consolidation trend during most of the year, in conditions of a significant increase in fiscal revenues. Inflationary pressures declined, so the Bank of Albania eased its monetary policy. Risks to economic and financial developments in the country remain present and are mainly related to the uncertainty and impact of international developments. In these conditions, it remains important that the economic and financial policies of public authorities and the actions of market participants aim to preserve financial reserves that support the proper functioning of their activities.

The Financial Stability Report is one of the important periodic documents prepared by the Bank of Albania, with the main purpose of identifying and assessing the risks with which the financial system and its infrastructure operate. The document is introduced by the Financial Stability Statement, the publication of which every six months is a requirement stemming from the Law “On the Bank of Albania”.