Bank of Albania
 |
|
| Headquarters | Tirana |
|---|---|
| Established |
2 September 1925 |
| Governor | Gent Sejko |
| Central bank of | Albania |
| Currency |
Albanian Lek ALL (ISO 4217) |
| Website | http://www.bankofalbania.org/ |
2 September 1925
The Bank of Albania (Albanian: Banka e Shqipërisë) is the central bank of Albania. The Bank of Albania has considerably evolved since being established, in contour with economic, political, and social developments. The main headquarters of the bank is in Tirana. The bank also has five other branches located in Shkodër, Elbasan, Gjirokastër, Korçë, and Lushnjë.
The central bank was founded in 1925, and was named the National Bank of Albania until 1944. It was then re-established as the State Bank of Albania, which lasted until 1992 when the Bank of Albania was established. The Bank of Albania now operates as a modern central bank.
The primary goal of the Bank of Albania is to accomplish and sustain price stability. Collaborating with obligations developing from law, the Bank of Albania practices and applies policies of reaching its primary goal of keeping inflation under control. Along with their primary goal, the Bank of Albania promotes and supports the development of the foreign exchange regime and system, the domestic financial market, the payment system, and contributes to improving monetary and lending conditions.
One of the roles of the Bank of Albania is that it acts as manager of the county’s currency by balancing the currency in circulation and credit within the economy. This role is important because allowing too much currency into circulation will end up leading to inflation and allowing less currency in circulation will prevent the economy to grow. As acting currency manager, the Bank of Albania pursues to reach equilibrium between two extremes, which is to promote economic growth by maintaining price stability.
Another role of the Bank of Albania is that it acts as the fiscal agent to the most important client in the country, which is the Albanian Government. Since being the central Bank of Albania, the bank performs a wide range of financial services dealing with billions of Albanian Leks. The Government of Albania keeps an open account with the bank, through which it makes many domestic and international financial transactions. The Treasury operations, which consist of receipts and expenses made by the government is not carried out within the Bank of Albania, but through commercial banks.
The Bank of Albania is mandated by the Government to supervise and regulate all activity of banks and institutions operating banking activity within the country. The Bank of Albania enforces rules on the establishment of banks and institutions and licenses them. The bank also supervises and monitors all activity of these institutions to ensure that they follow and obey the laws and regulations. The central bank supervises the banking system with the following purposes:
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