Page 40 - Annual Report 2022

FINANCE GROUP

BKT and the banking sector as a whole, after striving while remaining in full compliance with regulatory
to overcome the consequences of the strong local ratios and respective limits.
earthquakes of 2019 and of the global pandemic
during 2020 and 2021, entered 2022 facing another The Resolution Department of BoA conducted its
unprecedented worldwide event: Russia’s military regular inspection in mid-2022 by assessing a number
intervention in Ukraine, commencing a major of positive steps taken by the Bank throughout
military conflict between the two countries. The the year to complete the recommendations of the
invasion of Ukraine was a specific, defined event, previous inspection: a bankwide self-assessment
and the international community imposed significant process was concluded, data quality was improved,
sanctions on Russia as a direct response to that and a full database of critical functions/employees
invasion. as well as a depository of all contractual agreements
has been established. The Financial Reporting
The conflict has continued, affecting global financial & Budgeting Department successfully managed
markets and exacerbating ongoing economic the whole process and delivered all the related
challenges, which include high inflation and global documents to the Bank of Albania in due time. BKT,
supply chain disruptions, leading to rising interest as the main systemic bank in the country, should
rates. BKT adopted a prudent approach, in establish a bankwide framework for satisfying all the
compliance with Bank of Albania (BoA) regulatory objectives of the Resolution Plan prepared by BoA,
requirements and the IFRS framework, by closely as well as complying with the sharply increased
monitoring the situation, measuring the impacts, requirements for regulatory capital and eligible
and recognizing the potential credit losses for liabilities applicable for the assigned MREL ratio
affected investments. Considering our high liquidity from 2022 to 2027.
and adequate capitalization levels, the Bank has
managed to achieve its overall budget objectives, The Finance Group, apart from closely coordinating
both in terms of profitability and balance sheet size, various external statutory and group audits, and