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The Association of Banks seeks clarity on the timing of expected legal and regulatory changes

Politiko 2024-11-13 14:46:57

The Association of Banks seeks clarity on the timing of expected legal and

The Albanian Association of Banks today asked for more clarity regarding the deadlines of some of the important legal and regulatory innovations in the preparation process.

In his speech during the annual conference of the Bank of Albania, the President of the Association of Banks, Bledar Shella, emphasized the need for a faster step in the necessary steps to be fully ready to integrate into the European Union.

"Now there is no more time. Perhaps a few years ago, we were the ones who asked the authorities for more patience and postponement of the deadlines for the implementation of the standards as long as an imminent EU membership date was not in sight. Today we speak differently. Because we have a defined time horizon - the year 2030. And in this time frame, the banking industry cannot fail to be a contributing, supporting and implementing part of the reforms that await us. Let me emphasize that we live in a time where developments are dynamic and things are constantly changing. Our interest is maximum in how the deadlines for completing the MREL for systemic banks will be handled, when we will have a new law for the central bank and second-tier banks, how the deposit insurance scheme can be changed and when we will be ready for instant payments," he said.

According to him, the banking sector is fully aware that the challenge of integrating the banking industry through the completion and implementation of the legal and regulatory framework of the EU and its institutions requires the involvement of all interested parties.

"Banking activity, which for several years, in fact, has been adapting to regulatory changes in accordance with EU standards, does not come to this empty territory. Now our attitudes and opposition to changes are completely guided by the fact whether these changes are in line with EU standards or not. This has made us experience the burden of the load and responsibility more quickly to go to this process without resistance, but with desire, energy and faith. Although the adaptation of the required legislation is almost determined by EU directives, our role is still indispensable. The new standards must be well understood, there is a need for education and training of the staff who will implement them, but there is also a need for public education to understand them. Starting with PSD2 and SEPA and continuing for others. As AAB, it is up to us to be at the head of this process, treating them with priority according to the agenda," said Mr. Shella.

He pointed out that the banking sector has managed to fulfill the requirements related to open banking, while it has taken great steps forward in the direction of digitization.

"We have just successfully closed Open Banking, all in compliance with PSD2. Now we await the decision to be part of SEPA. Digitalization, implementing strict requirements for cyber security and personal data protection, has included every aspect of banking activity - from onboarding, electronic signature, services, utility payments, payments for public services, account control, exchanges, etc. ., all in one smartphone. Aware that we still have to do for financial inclusion, even though with the law on the basic account, there is already a product to attract more citizens to the bank," said Mr. Shella.

According to him, the figures so far clearly prove that the banking industry is at a very good moment in its development. Only for the 9th month of this year, the banking sector has provided about 281 billion ALL in loans to the economy, an increase of 30% compared to the same period last year. The NPL ratio fell to 4.58%, the lowest level in the last 16 years. Annual growth of deposits 4.1%. 63% of the number of payments are made through electronic channels. Even the total value of payments in these channels has increased to 41%. 34% of active bank accounts are accessible from the Internet.

Mr. Shella emphasized that the role of the banking industry and its contribution to the development of the economy is indisputable.

"We are proud that, after going through the consequences of the crisis of 2008-2010 and those of 2019 and back, such as the earthquake, the pandemic, the war in Ukraine or inflation, the banking industry turned out to be empowered, well-capitalized according to the requirements of the Bank of Albania, with increased lending activity, more public trust in banks, more digitization and more openness to the public. We must strengthen and improve this positive trend during the reform process that unites us with the EU," he said./ Monitor