Regulatory Alerts2011-09-14 | 62/2011Bank of Albania Regulation 62/2011 on Credit Risk Management for Banks and Foreign Bank Branches
The Bank of Albania’s Supervisory Council issued Regulation 62/2011 to mandate comprehensive credit risk management frameworks for domestic banks and foreign bank branches. The regulation establishes clear organizational responsibilities, requires regular stress testing to evaluate financial sustainability under economic shocks, and standardizes a five-tier credit classification system based on borrower conditions and payment arrears. It further prescribes precise methodologies for calculating loan loss provisions and mandates robust internal controls to ensure timely risk identification and capital adequacy.
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