Page 26 - BKT Annual Report 2023 EN

26 BANKA KOMBËTARE TREGTARE

TREASURY

AND FINANCIAL

INSTITUTIONS

GROUP

In 2023, BKT solidified its leadership position with an impressive security portfolio
within the Albanian banking sector, managed by the Treasury Department.
Throughout 2023, the bank consistently demonstrated its commitment to
safeguarding assets and ensuring the financial well-being of its clients. By
proactively monitoring risks and optimizing investment strategies, the Treasury
Department maintained a robust security portfolio, reinforcing its reputation as
a reliable and secure financial institution.

The Treasury Department achieved a significant milestone by taking a leading
role in the private issuance of Minimum Requirement for Own Funds and Eligible
Liabilities (MREL) bond. This groundbreaking move marked the first time such
bonds were issued in Albania. Notably, the Treasury Department secured the
largest issuance amount ever in a single currency among all banks operating in
the country. By diversifying funding sources and accessing international capital
markets, this strategic issuance strengthened the bank’s financial position and
contributed to the stability of Albania’s financial system.

BKT was the top Albanian dealer for foreign exchange trading in 2023, with
best bid & offer spreads for retail and corporate clients. BKT was also leader in
forward Fx market. Net Fx trading revenues of Treasury Department reached
to US $5.4 million in 2023.

Recognizing the importance of strategic alliances, the Treasury Department re-
activated two Global Master Repurchase Agreements (GMRA) with reputable
foreign banks. These agreements facilitated access to better and cost-effective
funding through repurchase agreement deals. By collaborating with international
counterparts, the bank enhanced liquidity management and expanded its
financial reach. Additionally, the Treasury Department proactively established
lines with new brokerage agencies, providing deeper and wider access to the
Eurobond markets. This move not only diversified investment opportunities but
also strengthened the bank’s position as a key player in the global financial
landscape.