Regulatory Alerts2001-06-06 | 42/2001Regulation 42/2001 on Bank Investments in Commercial Company Equity
The Bank of Albania’s Supervisory Council issued Regulation 42/2001 to establish prudential ratios and approval procedures for banks investing in commercial company equity. The regulation permits investments up to 60% of regulatory capital without prior approval, provided individual stakes do not exceed 15%, while larger investments require supervisory consent, a minimum 12% capital adequacy ratio, and proof of recent profitability. It further defines regulatory capital calculations, mandates specific documentation submissions to the Supervision Department, and sets response timelines of five to thirty days for processing equity investment requests.
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