Albania new measures, law for banks
17/11/2011

The Parliament voted with consensus the law that prohibits the banks in Albania to transfer capital to their mother banks abroad, when in financial difficulties.

“We all know that the risk comes from abroad and there is no reason why we should have a part of our banking system damaged, only because the origin of the capital is from a country that might have problems in a given moment”, declared Ridvan Bode, Minister of Finances.

Although it received unanimous votes, the law spurred strong debates in Parliament:

“The Parliament needs more information regarding the rights granted to the Bank of Albania Board for taking the Bank in their ownership or for appointing an administrator. Mr. Bode, let me remind you the Ponzi schemes, when this role that you want to give to the Bank of Albania for the failing private banks, until yesterday was the role that ‘Deloitte & Touchè’ had with Ponzi schemes”, declared the Socialist MP Pandeli Majko.

Bode replied that it is not sufficient to remind the Ponzi schemes for noting that our banking system has problems. The Minister declared that the World Bank report considered the Albanian banking system as the most stable in the region.

Opposition experts expressed their readiness to pass the law, but they declared that it is delayed and incomplete, and that in the meanwhile, the risks for the banking system have increased.

The Socialist MP Arben Ahmetaj declared that 18.3% of bad loans is a serious problem, the collateral quality is unsafe and the law cannot predict the risk.

Bode replied that the Albanian system is credible. The citizens believe it, although the opposition appeals each day that the system is weakened and deposits are being withdrawn.

The law predicts for the first time the construction of Bridge Banks, which enable the division of problematic banks by transferring the good assets and capitals in a provisory bank, while sending the problematic ones for liquidation.