Regulatory Alerts2019-09-04 | 60/2019Bank of Albania Guideline 60/2019 on Banks’ Stress Testing
The Bank of Albania’s Supervisory Council issued Guideline 60/2019 to mandate standardized stress testing frameworks for all licensed banks and foreign bank branches in Albania. The regulation establishes mandatory frequency thresholds, requiring systemically important institutions to conduct tests at least twice annually and others once yearly, while defining capital adequacy and liquidity stress methodologies alongside static and dynamic balance sheet assumptions. Banks must integrate these exercises into their core risk management, governance, and strategic planning by maintaining robust data infrastructure, ensuring clear reporting lines, and validating models through backtesting and scenario analysis.
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