AL Financial Sector DPL

closed

The development objective of the Financial Sector Modernization Development Policy Loan Project for Albania is to strengthen the financial sector regulatory and supervisory regime and mitigate key vulnerabilities of the bank and non-bank financial sectors. This development policy loan (DPL) aims to strengthen the financial sector regulatory and supervisory regime and mitigate key vulnerabilities of the bank and non-bank sectors. The present operation is designed to support the government's reform agenda to address key challenges across the financial sector. The operation is structured around three pillars: (i) strengthening regulation and supervision of the banking sector and financial safety net; (ii) expediting the resolution of non-performing loans (NPLs); and (iii) strengthening the regulation and supervision of non-bank financial institutions (NBFIs). This is a standalone operation in the amount of United States (U.S.) 100 million dollars. Domestic and external vulnerabilities are high and continue to pose risks to macroeconomic stability. In sum, the financial sector authorities have undertaken significant measures to minimize vulnerabilities in the financial sector, and are currently working on the implementation of several other key reforms to further mitigate risks.