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Capital adequacy test, BoA: Banks must increase their capital

Capital adequacy test, BoA: Banks must increase their capital
If the Albanian economy would suddenly find itself in front of a crisis, banks that exert their activity in our country would face the need for more money, although they are reporting sufficient capital.

This is confirmed by the Bank of Albania in the declaration of the Financial Stability, referring to the capital adequacy which it has carried out in the country’s banking system, based on two supposed scenarios of crisis in the country, a moderated one and an aggravated one.

Namely, for the past two scenarios, the central banking institution confirms that there would be a need for more capital. “Although the banking sector remains well capitalized, it would need to increase its capital in case of an aggravated scenario”, the Bank of Albania says, further stressing that “the demand for extra capital for particular banks appears in the aggravated scenario”. /balkaneu.com/

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