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Bank of Albania Supervisory Department Advisory on Regulatory Bank Capital
How do banks in Albania calculate regulatory capital for covering credit risk?
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This document is the advisory on regulatory bank capital issued by the Bank of Albania to banks and branches of foreign banks functioning in Albania. It defines the calculation method of regulatory capital of banks to cover credit risk.
The document also defines various terms used in calculating the regulatory capital:
- Intermediate result: Earnings or losses in every fiscal period, except the fiscal period at the end of the year;
- Fiscal year end earnings: Earnings of the fiscal period at the end of each year, not distributed until the moment that regulatory capital is reported;
- Subordinated liabilities: Assets that originate from the emission of subordinated titles or loans, whose payment is made after the payment of other liabilities.
Finally, the document provides a form to be used by the banks to report their regulatory capital for covering risk.
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