Regulatory Alerts2014-02-26 | 10/2014Regulation 10/2014 on Risk Management from Large Exposures of Banks
The Bank of Albania’s Supervisory Council issued Regulation 10/2014 to establish comprehensive rules for calculating, supervising, and reporting large exposures of licensed banks. The regulation mandates that banks measure total exposure to connected persons or groups against a 10 percent regulatory capital limit, with a stricter 15 percent cap for systemically important banks, while permitting netting of trading and banking book positions. It further outlines specific exemptions, collateral substitution approaches, and internal monitoring procedures to mitigate concentration risk and ensure consistent reporting across the Albanian banking sector.
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