Albanian central bank adopts new rules to prevent risks, losses in banking system

The Bank of Albania (BoA) has adopted a new regulation for determining elements that threaten the bank's daily activities, local media reported Wednesday.

The central bank's report said the new policy for risk management at the Bank of Albania aims to determine risks and implement several measures to prevent risks, while also figuring out losses occurring by human factor, cited as the main risk.

Losses from the human factor are actually directly linked to the frequent robberies that have occurred recently in Albania wherein several second-tier banks have been robbed.

A breach of the internal regulatory framework by the bank's employees is listed by BoA as the financial loss factor related to staff.

The losses are a result of insufficient staff, lack of required knowledge, inadequate supervision, the departure of key employees, and fraud or non-compliance with ethical standards and integrity in the workplace, the Bank of Albania report cited.

Deficiencies in the procedures regarding activities carried out by banks, the malfunctioning or the deliberate damage of electronic systems, are also determined to be a significant problem resulting in financial losses for Albania's banking system.

"Policy for risk management at the Bank of Albania aims at identifying the problems and risks, improving the system of internal control, minimizing losses caused by human factor, and preventing operational risks that come from people. Endit