The Bank of Albania reported that the Resolution Fund increased by ALL 1.04 billion in April 2025 after collecting banks’ annual contributions, bringing the fund to ALL 6.78 billion after eight years of contributions since its establishment. Following the pooling of the 2025 contribution, the fund’s financial assets reached ALL 6.870 billion. Established in 2018 to support the use of resolution instruments, the fund is governed by Law No. 133/2016, which requires it to reach a target level of 0.5% of the banking system’s total liabilities within 10 years. For this purpose, liabilities are defined as total assets minus the regulatory capital of all licensed banks. The law’s timetable implies a target value of ALL 8.9 billion by 2027, and the 2025 annual contribution of ALL 1.04 billion was calculated under Regulation No. 56/2017 and paid in full, proportionally by all banks, by 30 April 2025. The Deposit Insurance Agency manages the fund under an investment policy approved by the Bank of Albania, and the fund may be used for measures including guarantees, liquidity support, asset purchases, capital contributions to a bridge bank or asset management vehicle, compensation for certain creditor losses, and covering fund management expenses.
Bank of Albania 2025-05-21
Bank of Albania collects ALL 1.04 billion annual contributions, lifting the Resolution Fund to ALL 6.78 billion
The Bank of Albania announced the Resolution Fund increased by ALL 1.04 billion in April 2025, reaching a total of ALL 6.870 billion. Established in 2018, the fund aims to reach 0.5% of the banking system’s total liabilities by 2027, with a target of ALL 8.9 billion. Managed by the Deposit Insurance Agency, the fund supports resolution instruments such as guarantees and liquidity support.