Banks' losses from thefts and human errors amounted to EUR 5.2 million in 2017 in Albania

Banks' losses from thefts and human errors amounted to EUR 5.2 million in 2017 in Albania

 Banks' losses from the operational activity in 2017 amounted to 5.2 million euros, as reported by the Bank of Albania (Operational risk according to the regulatory definition represents the risk when the entity suffer losses as a result of unsuitability or failure of internal processes and systems of human errors or external events).

According to the Bank of Albania, the operational losses of banks for 2017 amounted to Lek 0.7 billion. The average level of operational losses on capital requirement for the banking sector is 10%. A year ago, this ratio was 7 4%

But the Central Banking Authority noted that by the end of 2017, the banking sector's operational losses did not exceed the capital requirement for operational risk and their weight was low.

By the end of 2017, the capital requirement for operational risk amounted to Lek 6.7 billion.

Although banks' reports show an improvement in capital adequacy coverage of operational risks, the supervisory activity of the Bank of Albania has identified the need for further improvement of the process for identifying and reporting operational losses in line with the bank activity profile

While in response to the violation of physical security in the activity of money transorting during 2015, the Bank of Albania has strengthened the minimum requirements in the relevant regulatory acts in the direction of planning, drafting monitoring and overseeing the implementation of procedures by special security units in banks.

Bank of Albania announces also that in the near future will strengthen the focus of assessing the adequacy of banks' systems for controlling the operational risk as part of regular inspections at supervised entities.
Banks' losses from thefts and human errors amounted to EUR 5.2 million in 2017 in Albania Banks' losses from thefts and human errors amounted to EUR 5.2 million in 2017 in Albania Tuesday, May 01, 2018 Rating: 5
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