Regulatory Alerts2007-10-15 | 57/2007Regulation 57/2007 on Risk Management of Foreign Bank Branches
The Bank of Albania’s Supervisory Council issued Regulation 57/2007 to establish comprehensive risk management frameworks for foreign bank branches operating in Albania. The regulation mandates that these branches maintain a Capital Equivalent Deposit and secure parent bank guarantees while adhering to strict exposure limits, capping total credit outstanding at 70 percent and single or connected exposures at 5 percent of quarterly assets. It further requires monthly and quarterly reporting, standardized documentation of parent bank financials, and grants the central bank supervisory authority to enforce compliance or apply liquidation safeguards when thresholds are breached.
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