Financial Sector Strengthening Program
SECO contributes to strengthening the stability of the non-bank financial sector in Albania by supporting the Albanian Financial Supervisory Authority (AFSA) to build-up the relevant capacities to respond to immediate risks and prepare for near to medium-term capital market developments.
Economic and financial policy
- World Bank - International Bank for Reconstruction and Development
|Background||While the Albanian non-bank financial sector is small, new risks have emerged which cannot be covered by the current capacities at AFSA and require a significant strengthening of its regulatory and supervisory framework. In particular, the investment funds sector has experienced a dramatic structural change in the past few years, giving rise to a relevant systemic risk. Further capital market activities are expected to emerge in the near to medium-future, especially regarding the corporate and municipal bond market to enable adequate financing for the public sector.|
|Objectives||The overall goal of the project is to support financial sector stability and development by building-up and strengthening the relevant professional and institutional capacities at AFSA. The project will allow to establish a comprehensive supervision methodology for investment funds, improve the regulatory and supervisory framework for bond issuance and strengthen the relevant professional resources and institutional capacities at AFSA to improve on-site and off-site supervision of capital market activities.|
|Medium-term outcomes||AFSA has an apropriate organizational structure to regulate and supervise the investment fund sector.AFSA has the adequate professional capacities to supervise the investment funds sector as well as a long-term approach to train staff in the supervision of capital market activities.A supervision methodology for the investment funds sector is established.An improved legal framework to regulate investment funds, taking into account compliance with EU Directives and IOSCO principles is established.AFSA is prepared to elaborate a new legal framework for bond markets.AFSA has the capacities to handle and monitor bond issuance applications.|
Expected results: Proposal for new organizational structure and staffing based on needs assessment.Training program including participation in a professional certification program, exchanges with partner supervisory authorities, and on-the-job trainings, based on needs assessment.Strategy advising AFSA on establishing sustainable long-term training mechanisms.Supervision methodology for investment funds sector including reporting template for market participants, off-site analysis manual, on-site inspection manual.Amended laws and regulations for investment funds based on a legal framework review and gap analysis.Draft amendments regarding regulation of bond issuance based on a review and gap analysis of the current regulations and procedures.Training dedicated to debt instruments and markets and bond issuance applications.
|Directorate/federal office responsible||
Swiss cooperation with Eastern Europe
|Budget||Current phase Swiss budget CHF 2'000'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 2'000'000|
|Project phases||Phase 10 01.01.2015 - 31.12.2019 (Current phase)|