Regulatory Alerts2021-12-01 | 2/2021Guideline 2/2021 on Internal Liquidity Adequacy Assessment Process
The Bank of Albania’s Supervisory Council mandates that all domestic and foreign bank branches implement a comprehensive Internal Liquidity Adequacy Assessment Process (ILAAP) to identify, measure, and manage liquidity and funding risks across short-, medium-, and long-term horizons. Institutions must maintain high-quality, unencumbered liquidity buffers and stable funding profiles while actively monitoring intraday payment obligations, counterbalancing capacity, and market access under both normal and stressed conditions. Banks are required to establish board-approved risk appetite statements, robust organizational frameworks with independent control functions, and integrated IT systems that ensure continuous monitoring, stress testing, and timely monetization of liquid assets to prevent payment failures during financial disruptions.