Financial Sector Institution Building Technical Assistance Project

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The Financial Sector Institution Building Technical Assistance Project for Albania aims to strengthen the financial sector, focusing on the banking and insurance industries. There are four main project components. The first finances services from management advisors and privatization advisors, needed to privatize a savings bank, and funds a financial audit. The second component strengthens the country's financial infrastructure including implementing an inter-bank payments system; providing technical assistance to develop national accounting standards, revising the chart of accounts for the enterprise, banking, insurance sectors, and budgetary institutions to comply with the new law; carrying out an operational and financial audit of the loan collection agency; and establishing a credit information bureau. The third component supports advisory services to develop and implement a privatization strategy; to price and set reserves for third party liability and casualty/life insurance products; and to introduce modern claims management systems and skills. It also develops and integrates accounting and operations' information systems, and develops the legal and regulatory environment dealing with issues such as solvency and liability/asset management. The fourth component focuses on revising the legal, institutional, regulatory, and supervisory framework for capital markets to ensure transparency, investor protection, and risk reduction.