2009 Program

SPI Program 2009

The consultation process for building up SPI Albania 2009 activity program was based on a questionnaire centered on addressing policy objectives set out by the Governor of Bank of Albania in the two 2008 Banking Forum meetings. SPI Secretariat approached 20 local public and public institutions, out of which 15 answered, and 5 international donors. SPI Secretariat gathered 40 project proposals, out of which 10 were selected for the 2009 Program.

The proposed 2009 program is intended to have a high impact on key areas:

• Completeness of the market: central depository for securities, FX domestic payment system, extension of credit bureau services (database on businesses and retail-scoring cards);
• Increased opportunities to engage in financial transactions: improving public acquisition procedures for financial services;
• Cost efficiencies: improvement of procedures for execution of bank accounts;
• Core prudential issues: enhancing banks’ liquidity risk management, improving the reporting system, reviewing calculation of foreign exchange open position, loan loss provisioning under IFRS.

The emerging overall theme is one of managing risk through a self-reinforcing combination of market infrastructure and prudential regulations interventions. For example, extension of credit bureau services will serve a better credit risk management; FX domestic payment system will contribute to better liquidity and FX open positions management. Continued improvement of disclosure practices (IFRS adoption and simplifying the reporting system) underpins this risk management orientation.

Projects:

• Enhancing banks’ liquidity risk management
• Debt Procurement
• Unique and rationalized reporting system
• Revising regulatory act on Execution of Procedures on Bank accounts
• Revising Foreign Currency Open Position
• Preparing a feasibility study for a central depositary
• Loan loss provisioning under IFRS
• Establishment of a national settlement scheme for payments in foreign currency
• Extension of the credit bureau services - database for businesses
• Extension of the credit bureau services - scoring cards for individuals

Program Matrix

The Program Matrix demonstrates how the selected projects are positioned in relation to Bank of Albania Governor's Banking Forum Issues and European Central Bank criteria.

2009 Planning