Regulatory Alerts2020-11-04 | 63/2020Regulation 63/2020 on the Leverage Ratio of Banks
The Bank of Albania’s Supervisory Council has approved Regulation 63/2020, which establishes a mandatory minimum leverage ratio of 5.75% for all licensed banks and foreign bank branches in the country. The regulation mandates that institutions calculate this ratio by dividing Tier 1 capital by total exposure, incorporating detailed methodologies for balance-sheet assets, derivatives, credit derivatives, and securities financing transactions. Set to take effect on January 1, 2022, the framework requires banks to implement necessary measures and submit biannual progress reports while ensuring continuous compliance with the newly defined exposure calculation rules.
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