Albania’s central bank plays a key role in the country’s ongoing European Union (EU) integration process, as emphasized at a conference today in Tirana. The event, organized by the Bank of Albania in collaboration with the Albanian Banking Association, gathered leading figures from Albania’s financial sector and government.
Key speakers and participants
The conference was attended by the Governor of the Bank of Albania, Gent Sejko, along with Bledar Shella, the head of the Albanian Banking Association. Also present were Eduard Shalsi, Chairman of the Economic and Finance Committee, Minister of State and Chief Negotiator Majlinda Dhuka, and Finance Minister Petrit Malaj.
During his speech, Governor Sejko outlined Albania’s significant progress towards EU membership, particularly in areas relating to financial stability and monetary policy. Sejko emphasized that Albania’s central bank is actively involved in the EU accession process, working across five key negotiation chapters.
Central bank’s role in EU integration
Sejko stated that the Bank of Albania plays a primary role in Albania’s EU membership negotiations, particularly in Chapters 4 (Free Movement of Capital) and 17 (Economic and Monetary Policy). He explained that Albania’s financial market development, particularly through increased portfolio investments, is a key element of its integration efforts. These investments help reduce financing costs within the country and support overall economic growth.
He added that Albania’s growing exposure to the EU’s financial cycle presents challenges and opportunities, requiring further development of macroprudential policies and financial instruments.
Albania’s economic progress
Governor Sejko also noted Albania’s impressive economic transformation over the past decade. In 2024, the country’s economic activity has surged from €10 billion to €24 billion. Unemployment has fallen from 17.5% to 10.7%, and average annual income has nearly tripled, increasing from €3,500 to €9,200 per capita.
He highlighted that inflation has remained stable at an average of 2.5%, while public debt has reduced from 72% to 56% of GDP. The banking sector has shown resilience, with non-performing loans decreasing from nearly 23% to 4.6%, and capital adequacy ratios improving significantly.
Looking ahead: Challenges and priorities
Looking to the future, Sejko outlined key challenges Albania will face in aligning its regulatory framework with EU standards. One of the main tasks ahead is synchronizing the speed of banking system regulatory convergence with other sectors of the financial market.
He also emphasized the importance of further developing financial markets, payment instruments, and financial education as Albania continues to modernize its banking system. These steps are crucial in ensuring that the country’s financial sector remains competitive and prepared for integration into the EU market.
Conclusion
The conference concluded with a discussion on the continued importance of central banks and the banking sector in supporting Albania’s EU integration process. As the country moves closer to achieving EU membership, these institutions will play a vital role in stabilizing the economy and ensuring the country’s financial system meets European standards.
