Page 37 - Annual Report 2022
P. 37
2021
2022
as a result of uncertainties about the future balance sheet and increase the pressure on income
and expenditures. BKT followed a very cautious
The Albanian banking system reflected the outlook risk management policy that aimed to preserve its
recorded by economic activity globally and in assets’ value and quality, and yield positive financial
Albania. Asset quality improved steadily, as shown results. At the same time, it has built up its liquidity
by the improvement of the ratio of nonperforming reserves and maintained solid capitalisation ratios.
loans (NPL) to total loans, which declined to the level
of 5.05%, the best rate recorded in the last decade. The Risk Management Group (RMG) remained
The increase in banking activity was supported by a focused on identifying and closely monitoring the key
stable increase of domestic deposits, confirming the risks, anticipating measures to enable customers’
positive sentiment of the public toward the banking recovery and facilitate loan repayments. Aiming
system. to control and mitigate these increasing risks, the
Business Lines have suggested following a more
These developments have challenged the Bank prudent lending approach and strengthening loan
through several channels that affect the value of the criteria. We continuously encouraged the Branches
