The Bank of Albania’s Supervisory Council kept the policy rate unchanged at 2.75%, maintaining the overnight deposit and overnight loan rates at 1.75% and 3.75% respectively, and approved amendments to its regulations on consumer and mortgage credit and on transparency for banking and financial products and services. The regulatory changes are framed as a response to higher consumer protection requirements, with a focus on lowering costs for consumer credit and increasing transparency, particularly for non-banking financial institutions. For instalment consumer credit, amendments revise the methodology for calculating the Effective Interest Rate (EIR) for loans in the ALL 0–200,000 range, which is expected to reduce the EIR for that category, and introduce a requirement that commissions be paid when the credit is granted rather than spread over the repayment period. Separately, the transparency regulation changes target the advertising phase by standardising requirements across in-scope entities while differentiating disclosures by product or service type, specifying required advertising content and communication forms, and setting out measures the Bank of Albania may take to remove or correct advertisements where regulatory breaches are identified.
Bank of Albania 2025-02-05
Bank of Albania keeps policy rate at 2.75% and amends consumer credit cost and advertising transparency rules
The Bank of Albania's Supervisory Council kept the policy rate at 2.75% and approved regulatory amendments to enhance consumer protection and transparency in banking and financial services. Changes include revising the Effective Interest Rate calculation for loans in the ALL 0–200,000 range and standardizing advertising requirements for financial products. The amendments aim to lower consumer credit costs and improve transparency, especially for non-banking financial institutions.