Regulatory Alerts2020-02-05 | 06/2020Regulation 06/2020 on Prior Approval for Intra-Banking Group Financial Support Agreements
The Bank of Albania’s Supervisory Council issued Regulation 06/2020 to establish the conditions and procedures for granting prior approval to intra-banking group financial support agreements. Licensed Albanian banks must obtain regulatory clearance before providing intra-group financial support, such as loans or guarantees, by submitting a two-phase application that demonstrates compliance with capital adequacy, liquidity requirements, and overall group financial stability. The regulation mandates detailed impact assessments, specific disclosure obligations on bank websites, and imposes penalties for non-compliance to ensure that financial support does not undermine the providing bank’s resolvability or national financial stability.
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