The law on insurance of bank deposits is expected to be revised in the context of the approximation of European legal provisions. Meanwhile, second-tier banks complain that, according to the current law, the commission they pay to secure bank deposits is too high.<\/p>\n
The second level banks ask the Deposit Insurance Agency to reduce the premium to pay for the emergency fund.<\/p>\n
According to them, the absence of a premium collection system based on an effective risk is missing.
\nCurrently, the premium paid is fixed at the rate of 0.125% of the arithmetic mean of the amount of insured deposits, registered in the bank on the last day of every three months.<\/p>\n
According to the current law on “deposit insurance”, it says that the Deposit Insurance Agency, the entity responsible for the insurance law, which also determines the rules for the operation of the bank deposit insurance scheme, can reduce the three-month premium payable by banks up to 0.025%, but only if the financial resources of the Agency are not less than 5%.<\/p>\n
More specifically, if the total of insured deposits is 100 million euros, the bank deposit insurance fund must be at least 5 million euros, equal to 5% of the amount of deposits. When this limit is exceeded, according to the provisions of the law, the Deposit Insurance Agency can reduce the obligation that the second level banks pay for deposit insurance.<\/p>\n
The Deposit Insurance Agency data, meanwhile, show that, at the end of 2022, the ratio between the value of the total deposit insurance fund and the total value of insured deposits reached 7% from 6.66% in the previous year.<\/p>\n
As a result, commercial banks, based on the provisions of this law, are requesting a reduction of the premium.<\/p>\n
But on the other hand, the Deposit Insurance Agency states that considering that Albania still needs to increase the fund for coverage in case of emergencies, the likelihood is that the revision of the law will actually provide for an increase in the maximum amount of coverage, thus implying an increase in the premium for second level banks.<\/p>\n
In Albania, the insurance has a legal coverage on bank deposits up to 2.5 million ALL, while in the EU this amount goes up to 100 thousand euros. With this logic, the premium should be revised upward, when the law changes.<\/p>\n
Banks argue that the premium increase would mean an additional barrier for them, significantly increasing costs for the sector.<\/p>\n
The value of the deposit insurance fund in banks at the end of 2022 reached about ALL 57.9 billion, with an increase of 9.6% compared to the previous year. This fund has two main sources of financing: premiums paid by banks and income from the investment of the fund.<\/p>\n
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The law on insurance of bank deposits is expected to be revised in the context of the approximation of European legal provisions. Meanwhile, second-tier banks complain that, according to the current law, the commission they pay to secure bank deposits is too high. The second level banks ask the Deposit Insurance Agency to reduce the […]<\/p>\n","protected":false},"author":23,"featured_media":64975,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[153,1803],"tags":[557,5870,5871,308,3166,243,151,505,2412],"acf":[],"yoast_head":"\n