Stress tests show Albanian banks are resilient to macroeconomic shocks.

By bne IntelliNews December 12, 2011
The central banks stress tests have shown that Albanian banking system is resilient to adverse macroeconomic shocks, Mapo daily reported. The unfavourable macroeconomic developments will result in a deterioration of the banks loan portfolio quality, in higher spending on provisions and in a profit and capital adequacy decrease. The resistance test has been performed under the assumption for 20% depreciation of Albanian lek against the euro, an annual growth of market interest rates by 2pps, a slowdown in annual lending growth to 9% y/y in 2012 and a GDP growth of 2.4% in 2012. The central bank said local lenders should strengthen their capital positions.
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