Page 90 - Annual Report 2022

Banka Kombëtare Tregtare Annual Report 2022 28

Banka Kombëtare Tregtare Sh.a.
Notes to the Consolidated Financial Statements for the year ended
31 December 2022 (Amounts in USD, unless otherwise stated)

4. Use of estimates and judgements (continued)
Going Concern

During the beginning of 2020, the pandemic of COVID-19 was spread globally. In response to the situation, in March 2020
the Government of Albania took drastic measures by suspending all activities that were not vital. Furthermore, facing the
consequences of the COVID-19 Pandemic, which go far beyond the crucial element of public health, both the Government
of Albania and Bank of Albania implemented immediate measures in order to mitigate the social and economic impact of the
outbreak.The government announced a sovereign guarantee to all the business which are facing liquidity problems and will seek
financing.

The Group considers the liquidity risk in the recovery plans, in the internal capital adequacy assessment process, setting well-
defined limits on its appetite for risk. The Group determines that its capital resources are available.
The Group performs stress test exercises to test the possible impact of macroeconomic indicators in Group’s key financial
position, performance and regulatory compliance.
In various stress test scenarios, the CAR in both, baseline and adverse scenarios, have resulted above the minimum requirement
threshold set by Bank of Albania. The Group has assumed that there is no need the capital requirements be increased.
In May 2022 the bank has approved the internal capital adequacy assessment process as at 31.12.2021.

During 2022, the Group has managed to achieve the budgeted results, exceeding them in terms of profitability. For the year
ending 2023, the Group expects the budgeted figures to be standing at positive results, although not possible to be reliably
measured at the moment.
The Group’s management evaluates the Group’s ability to continue as a going concern considering all the factors stated above
and is satisfied that the Group has the resources to continue in business for the foreseeable future. Furthermore, management is
not aware of any material uncertainties that may cast significant doubt upon the Group’s ability to continue as a going concern.
Therefore, the Consolidated Financial Statements continue to be prepared on the going concern basis: