RSS   Newsletter   Contact   Advertise with us
Post Online Media
Europe   The Bank of Albania

Albania drafts new law to prevent smaller banks from collapse

The Bank of AlbaniaThe Bank of Albania has sent to parliament a bill which stipulates ways for the central bank to intervene in second-tier banks in emergency situations.

One purpose of this bill is to avoid as much as possible the need for intervention by state funds, media reported, citing national bank experts.

READ MORE World Bank projects Albania's economic growth in next three years

The bill also aims to make available to the Bank of Albania a set of legal instruments to intervene in an early stage in case a bank runs into trouble or about to collapse, sources from the central bank said.

According to the draft, the Bank of Albania may have the right to dismiss and replace administrators and its governing bodies in second-tier banks.

The Albanian central bank will also be allowed to appoint a special administrator, transfer shares, assets and liabilities of second-tier banks to third parties without the approval of their shareholders or creditors, according to the bill.




What to read next





More inside POST
 
 

We use cookies to ensure that we give you the best experience on our website. Please allow cookies for fully-functioning website.

Allow Cookies Privacy Policy