Annual progress report 2015 albanian contribution – input I september 2014 – may 2015 table of contents
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- Status of legal harmonization
- Economic and social aspects
- Increase of capacities of staff
- Individual exemption agreements
- Decisions of imposition of sanctions
- CHAPTER 9: FINANCIAL SERVICES Introduction
- 9.1 Banking KeyMessages
- Date of application 1.
- Institutional Capacities
- No. of Ref. Measure Responsible Authority
- 9.2 Insurance and pension insurance Key Messages
Key achievements In approximation of the EU acquis, two guidelines are approved. The Competition Commission’s decisions consisted mainly in fines, in order to keep a balance in the market and also encourage cooperation between the companies and the Authority in protecting free and effective competition in the relevant markets. The number of complaints to the Competition Authority is continuously increasing. Complains are directed to several sectors of the economy, which are currently under investigation for potential infringement of competition rules. Regarding rising of awareness on competition advocacy and assistance on Competition Law, during November-December 2014, in major cities of the country, Gjirokastra, Korca and Shkodra, were organized one day workshops. 8.1 Competition The Competition Commission approved 2 (two) guidelines on the applicability of Article 8 and 9 of Law No. 9121, 23.07.2003 “On Competition Protection” and on the "Guideline on the assessment of vertical restraints". Status of Legal Harmonization In implementation of Article 70 and 71 of the SAA, and according the obligations of the National Plan for European Integration 2014-2020, are approved the following acts by the Competition Commission (CC):
Currently the Competition Authority is working on drafting a new guideline on remedies, which in following will be sent for approval to the Competition Commission. The new guideline will be in compliance with the EU Commission notice on remedies acceptable under Council Regulation (EC) No 139/2004 and under Commission Regulation (EC) No 802/2004 (2008/C 267/01). Institutional Framework The Competition Authority is implementing investigative procedures in a number of key sectors of the economy such as fuel sector, telecommunications, maritime, energy etc. Investigative procedures are performed based on the legal framework in force. Detailed information on investigation procedures and decisions taken by the Competition Commission is provided in the respective Annex of this chapter. The total number of Competition Commission’s decisions is 31 decisions: Decisions on concentration authorization → 8 decisions Decisions on the approval of legal acts → 2 decisions Decisions on recommendations → 5 decision Decisions on interim measures → 1 decision Decisions on fines → 1 decisions Decisions on individual exception of the agreements → 1 decision Other decisions (the opening of preliminary and in-depth investigations, extension of the deadlines, amendment of the decisions etc) → 13 decisions During the reporting period21 (twenty-one) complaints were filed at the Competition Authority, 11 of which during 2015. All complains are examined to observe if they are object to the competition law or not. Increase of capacities of staff The Competition Authority structure is completed with one (1) more staff /inspector employed at the Market Surveillance Directorate. Representatives of the Competition Authority staff participated in activities organized by the ICN. Several ICN questionnaires are compiled on the applicability of competition law in Albania as well as on the application of competition rules. The Competition Authority inspectors participated in a workshop organized by OECD (RCC Competition Regional Centre in Budapest), focused on remedies and commitments in competition cases. Some of the other topics in which the staff of the CA is trained are re: issues in establishing abuse of dominance (RCC/Budapest); Inspections and down raids (Sofia Competition Forum); Competition Cases in retail markets (RCC/Budapest). During November-December 2014, the Competition Authority in the context of strengthening the advocacy and assistance related to the Competition Law, organized one day workshop in several major cities of the country as: Gjirokastra, Korca and Shkodra. Target groups were mainly businesses and representatives from universities localized in these cities. The presentations were followed by Q/A sessions. and distribution of brochures with information on the activities of the Authority and the legal instruments used to protect free competition in the market. In January 2015, members of CA staff participated in a workshop, on the new EU rules applying in IPA twinning projects. 8.2 State aid In the field of state aid a new legislation was drafted. The draft law foresees changes in the composition of the Albanian State Aid Commission in order to strengthen the independence of the State Aid Enforcement Authorities. State aid awareness-raising activities at central and local governance level resulted in increase of state aid notification and state aid decision. Status of legal harmonization Over the period covered by this report, a draft Law on State Aid Control was prepared. The draft law outlines the main forms and categories of state aid, as well as transpose of the main EU acquis (article 107 and 108 of TFEU, Council Regulation (Ec) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 108 of the treaty on the functioning of the European Union, Commission Regulation (EU) No. 651/2014 of 17 June 2014 “Declaring certain categories of aid compatible with the internal market in application of articles 107 and 108 of the Treaty”; Commission Regulation (EC) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid). The transposition of the EU legislation is only partial because further harmonization will be done by the secondary legislation, which is foreseen to be approved within 6 months of the entry in force of the new law. The draft law has been sent to line ministries and stakeholders for their opinion and its adoption is foreseen for the third quarter of 2015. Institutional framework The responsible national institution for implementing this part of the acquis includes State Aid Control Sector in the Ministry of Economic Development, Tourism, Trade and Entrepreneurship (administrative structure for state aid control) and State Aid Commission, as the decision taking body for State aid control and responsible for authorization of state aid schemes and individual aid and recovery of unlawful aid. In order to strengthen the independence of the State Aid Enforcement Authorities, the new draft law will foresee changes in the composition of the Albanian State Aid Commission, as well as redesign of administrative processes. Economic and social aspects State Aid Commission (SAC) approved 5 new state aid schemes as follows:
Increase of capacities of staff During the reporting period State Aid Control Unit conducted awareness-raising activities with state aid stakeholders as local state authorities and public administration. During September – December 2014 the State Aid Control Sector in cooperation with Competition Authority organized four regional workshops to increase awareness of state aid policy and the law on State Aid at the level of the local municipalities, such as in the municipality of Saranda, Gjirokastra, Korca and Shkodra. In September 2014 the State Aid Control Sector delivered one day workshop on the topic “State Aid in Albania”. This workshop increased awareness of state aid policy and the law on State Aid at the governmental line ministries for civil servants and policy makers responsible for policy formulation, implementation and enforcement of economic programmes. Also in September 2014 the Competition Authority and the State Aid Control Sector delivered one day training to senior lawyers from line ministries to raise knowledge on competition law and state aid policy and to reinforce the cooperation on central governance level. An inter-ministerial working group which will serve as a mechanism for state aid structures to offer technical assistance, consultations and provide legal opinions has been set up. The inter-ministerial working group will held the first meeting in May 2015. The State Aid Control Sector and 2 members of State Aid Commission in March 2015 attended a study visit in State Aid office, Ministry of Finance in Slovakia and exchanged information and experience on organizational structure responsible for state aid, process of state aid notification and case handling, preparatory process and drafting of annual report, state aid registration, De minimis aid and illegal state aid. In order to improve access to information on state aid, a new website is under construction which will contain all State Aid Commission decisions too. On April 28-30, 2015 through TAIEX instrument, the state aid team will participate in a study visit at the Office for the Protection of Competition in Czech Republic to enhance capacity building on state aid procedure. State Aid Control Sector started the cooperation with the Ministry of State for Local Government and Albanian School of Public Administration to create a concrete plan/strategy for raising state awareness at the local governance level. ANNEX
The Competition Commission’s Decision No. 310, of 31.03.2014 decided to open the in-depth investigation procedure in the market of compulsory insurance of motor vehicles on the responsibilities of third parties in nine (9) Companies operating in the market. Competition Commission held hearings on the parties concerned under investigation. After these sessions, Competition Commission with Decision No. 324 of 30.07.2014, decided to grant the conditions and obligations to insurance companies in order to restore competition in this market, for undertakings that operate in this sector. Competition Commission in relation to this sector has also issued Decision no. 350, 30.07.2014 "On some recommendations to the Financial Supervisory Authority to promote competition in the market of compulsory third party liability insurance", in which are provided several recommendations to the Albanian Financial Supervision Authority (AFSA). Competition Authority after completing the necessary monitoring procedures concluded that the undertakings have implemented the conditions and obligations imposed by the Competition Commission. Regarding the obligation associated with Bonus Malus system, it is concluded that the intervention of FSA is needed for the adoption of bylaws on this point. For this reason Competition Commission with Decision no. 339, 24.11.2014 decided to close the in-depth investigation procedure in the insurance market.
Competition Authority, based on the price rise of tobacco has conducted monitoring procedures in this market. The market for import of manufactured cigarettes had the characteristics of a high market concentration, where the two main companies owned about 80% of the market therefore the Competition Commission Decision No. 342, 27.11.2014, decided to open the preliminary investigation procedures in the wholesale market of manufactured cigarettes. From the assessment of the emerging issues in the market in relation to increased prices, limiting of the offer and restricted sale, it was observed that the market for the sale of cigarettes during the month of October 2014 has been under the impact of legislative changes expected to affect the market, increasing consumer demand in a fictitious manner. The working group conducted dawn-raids, in which there wasn’t found direct evidence to prove a potential forbidden agreement between the companies under investigation. After the analysis made, it became clear that 5 undertakings operating in the market of import and wholesale of the manufactured cigarettes, which consist in 91% of the overall market of import and wholesale of the manufactured cigarettes for 2014, did not show signs of similar behavior regarding the pricing in the market. The main companies have raised the price but not at the same time, but with days in distance from each-other. In conclusion, the Competition Authority with Decision No. 353 ruled on the “Closing of preliminary investigation in the wholesale market of manufactured cigarettes”.
The fuel market has been one of the most sensitive markets during 2014, due to the price rise and discussions in the media. Competition Commission has conducted the necessary investigation procedures in this market. After the procedures of preliminary investigation the Competition Commission issued a report which was sent to the parties after the hearing sessions with the parties under investigation which took place in December 2014. Commission Competition Authority Decision no. 345, 12.02.2015 held that no evidence was found to prove the prohibited agreement or abuse of collective dominance between the undertakings under investigation. However, competition in the market of import and wholesale trading of fuel is not sufficiently effective because of market structures and legal regulation (law "On hydrocarbons)" and the instructions of the Ministry of Finance and the Energy. From the investigation it has been identified that there are redundant links in market structures that do not justify the added value of imports, customs free zones, wholesale sales, retail sales, up to the final customer, causing artificial increase in costs and a moderately low price elasticity. Competition Commission issued some recommendations for the Government of Albania, Ministry of Industry and Energy and the Ministry of Economic Development, Tourism, Trade and Enterprise. (I). Review of Law 8450, of 24.02.1999 "On the processing, transportation and marketing of oil, gas and their under products" enabling the companies operating in the wholesale market of euro-dieselt and gasoline to fulfill their selling retail as well as preserve the identity of the product and compete through their respective logos to retailers; (II). To create a legal basis and administrative infrastructure for a unit price transparency for hydrocarbons, in which enterprises that operate in market production, import and wholesale of fuel must notify in real time within 5-15 minutes of this unit and Authority Competition of any change in wholesale price (III). Evaluation of the implementation of port concession agreement "Vlora 1" to respect the obligation of the concessionaire exclusion in fuel trading and transfer of exclusive rights in related markets (iv). Use Instruments to control the frequent entrances and exits of enterprises operating in the fuel market. Also, companies operating in the oil market must submit for evaluation to the Authority, the agreements that they sign for the realization of common imports. The Competition Authority will continue to monitor the behavior of companies operating in this market.
By the given concerns in this market, the Competition Authority has conducted the necessary investigative procedures in the implementation of legal provisions in force. The Competition Commission Decision No. 316, of 23.05.2014 decided to open the procedures of preliminary investigation. The investigative procedures in this market have been concluded. There were conducted dawn raids inspections, the necessary information was gathered and is analyzed by the secretariat. Competition Commission with Decision No. 349, of 19.02.2015 has issued recommendations to the Ministry of Transport and Infrastructure: (1). To force the undertakings operating in the market to keep daily records of fees applied to each ticket sold and also keep ticket sales records for a period of at least 3 years; (2). These data to be accessible at any time by licensing institutions and market surveillance; (3). During the process of licensing of the undertakings it must be approved the maximum tariff levels to be applied to each category of guidance according the season; (4). The accomplished supervision of tariffs applied by undertakings to be compared with the maximum fees approved; (5). Develop a methodology based on real costs to determine the level of maximum tariffs for international shipping service to passengers and vehicles
Based on the complaints addressed to the Competition Authority and their assessment, the Competition Commission with Decision No. 326, 08.09.2014, has opened a preliminary investigation procedure in market of energy trade on cover losses in the distribution system. Secretariat of the Competition Authority has conducted down raids at the undertakings subject of investigation and has collected the necessary information. On 5-th of February 2015 hearing sessions with the Competition Commission and the interested parties were organized (representatives from Electric Energy Distribution Operator and the complaint party Gen 1) and in the future legal procedures will continue regarding this investigation procedure. Following the investigative procedures, Competition Commission with Decision No. 334, 31.10.2014, has decided “On some recommendations on competition growth in the market of energy procurement for the coverage of the loss in the distribution network” to the Regulatory Entity of Energy Sector: (1). In the amended terms, to review the procedures of purchasing energy monthly and annually for OSHEE under principles: a) Encouraging participation in the procedures of purchasing energy, b) Promoting competition among buyers; c) Ensure equal treatment and non-discrimination for all participants in the procedure of purchasing energy; d) Ensure the integrity, public trust and transparency in the procedures of purchasing energy and much lower costs for these types of transactions.(2). In the short term (as tenders are monthly periodicity) until the adoption of a new regulation for the purchase of energy from the operator of the Energy Distribution, the revised decision 30, 23.03.2001 of the ERE "On approval of rules and procedures of the acquisition of KESH .... ": (3). In drafting the rules for the purchase of energy for distribution operator taking into account the provisions of Decision no. 30, 23.03.2011 "On the rules and procedures of purchasing energy from KESH"; (4) Taking into consideration the fact that currently in Albania for all public procurement procedures are held in electronic form and carried through relevant electronic platforms. This procedure must be provided for in the rules of purchasing energy. (5).Monthly and annual publication of the quantity and average price of imported energy from the Regulatory Entity (ERE), to increase transparency and reduce the possibilities of abuse. Also, it is recommended that the ERE and the Ministry of Industry and Energy, bring before approval to the Competition Commission, all laws and legal acts of functioning of the energy market for revision, as this will help to develop and become more competitive the energy market. Actually, the secretariat is assessing the new project law “Project law in the electric energy sector” to evaluate if there are any potential competition restrains, according article 69 of the law “On Competition Protection”. At the end of the preliminary investigation in this market due to signs of restriction of competition, the Competition Commission with Decision No. 355, 20.03.2015 decided on “Opening of the in-depth investigation on the purchase of energy on covering the loses in the distribution system”, due to the fact that in the buying market of the electric energy for covering the losses in the distribution network, there are signs of restriction of competition from the part of the undertakings that operate in this market. These undertakings with their behavior may have restricted the free and effective competition in the form of the prohibited agreement (horizontal or vertical), that may create added costs for the buying undertaking and loss for final consumer.
Competition Commission on the basis of information on the possibility of an agreement by offer in the procurement procedures, with the Decision no. 333, of 21.10.2014, has opened a preliminary investigation procedure in the public procurement market with the object "Construction of the outer ring road of Tirana, the northeastern part (segment Turn-Coast Sauk River) Lot 1, Lot 2 and Lot 3 ". After completion of the procedures and gathering of the necessary investigation, the Competition Authority Commission with Decision No. 346, of 16.02.2015 decided to open in-depth investigation procedure in this market, procedures which are ongoing by collecting and processing relevant information needed.
The telecommunications market in 2014 has been under continuous evaluation by the Competition Authority, this also because of numerous complaints submitted at the Competition Authority. For this reason, the Competition Commission with Decision No. 336, of 11.11.2014, decided "For the opening of the preliminary investigation procedure in the mobile phone market to Vodafone company JSC, to assess whether there are signs of restraining competition. After the analysis conducted the working group concluded that “Vodafone Albania” is in dominant position in the relevant market and there is risk of causing serious and irreparable damage to competition, by infringing Article 9 of Law No. 9121, of 28.07.2003 “On Competition Protection”. T Competition Commission with Decision No.356, of 31.03.2015 ruled on “Interim measures for Vodafone Albania Sha in the retail mobile phone market”. On 08.04.2015 at the premises of the Competition Authority a hearing took place between the representatives of Vodafone Albania Sha and the Competition Commission. CC decided interim measures for Vodafone on the retail mobile telephony market to reset the free and effective competition in the market: (1). Vodafone should not apply tariffs in the retail market that have discriminatory effects for other operators in the national mobile networks (a). the amount of the minutes within Vodafone included offers /fix tariffs of the packages should not be higher than the minutes amount to the other national mobile networks; (b), the point above should apply for all offers, options and the rebates offered for the users. In case of not applying this decision against Vodafone should be imposed a fine (daily and even more up to 10% of the total turnover). The interim measures should be applied from Vodafone within 30 days.
After the monitoring conducted in the manufacturing sector and wholesale of eggs, given the concerns expressed, by which it was shown an immediate increase of 30% of the selling price for eggs, the Competition Commission with Decision No. 344, of 02.02.2015 has decided to open the preliminary investigation procedure in market of production and wholesale of eggs. Shortly after the release of the decision, surprise inspections were conducted and necessary information is being collected, which will be processed for the report of this investigation. Decisions on authorization of the concentrations: The notifications of the concentrations brought to ACA for authorization for the reporting time are 8 (eight). It is important to emphasize that these concentrations do not show signs of restriction of competition in the market or in a particular part of the market, resulting from the creation or strengthening of a dominant position. For these reasons Competition Commission decided to authorize these concentrations:
Decisions on recommendations: During the reporting period, the Competition Authority gave 5 (five) recommendations in different sectors of the economy, mainly in the regulating sector for the purpose of the well-functioning of the market.
Concession of Fiscal stamps. Competition Commission with Decision Nr.337, of 11.11.2014 has recommended the Ministry of Finance and Ministry of Economic Development, Trade and Enterprise to perform economic and technical evaluation on the applicability of the terms of the concession and economic analysis justifying the concession, which is followed by increasing the cost of business fiscal stamps, identifying and achieving the purpose for which the concession was granted, such as fiscal revenue growth and the fight against tax evasion and smuggling of excise products. The Competition Commission has recommended a review of the concession for the fiscal stamps for drugs, after it was found that production of these stamps has not started because it brings high costs for pharmaceutical products which have a very high sensitivity.
Individual exemption agreements On an individual exemption from the prohibition of the Project Agreement between "Digitalb" JSC and television operators ": To the Competition Authority it was filed notice from Digitalb asking for the exemption from the prohibition of the "Digitalb" JSC and television operators agreement. This agreement was analyzed taking into account the benefits derived from the agreement such as consumer participation right, non-restriction of competition regarding products, services subject to the agreement, the limited duration of the agreement, etc., as well as analyzing the potential restrictions as a result from the agreement. In conclusion, the Competition Commission, after taking the written opinions of all the operators in this market, which had no comment regarding this exemption, and after hearing the operator Digitalb that required the exemption, with Decision no. 338, of 11.11.2014 "On an individual exemption from the prohibition Project Agreement between " Digitalb "JSC and television operators" decided to 1). Exempt from the prohibition the type agreement between "Digitalb with television operators" until 31/12/2015. 2). Any changes or amendments to this agreement by the parties, but also its rebinding after its repeal deadline on 12/31/2015, will have to be re-notified to the Competition Authority requesting exemption. Decisions of imposition of sanctions During the reporting time the Competition Commission dealt only with one case on which the sanction of fine was used. In more details; the Competition Commission with Decision Nr.341, of 27.11.2014 "On the establishment of a minor fine to " Pelican "Sh.pk due to belated notification concentration realized with CGMA Agencies CMA Worldwide to create an independent enterprise CMA CGMA Albania Sh.pk", has decided to fine in value 100,000 (one hundred thousand) ALL " Pelican "Sh.pk. The reason was belated notification to the Albanian Competition Authority of concentration realized. CHAPTER 9: FINANCIAL SERVICES Introduction This chapter summarizes recent measures aimed in respecting the general principles of freedom to provide services and right of establishment in connection with the Albanian financial market, including both the banking and non-banking sectors. In accordance with Articles 89 of the SAA, Albania aims at the creation and development of a suitable framework for promoting banking, insurance and financial services. Key Messages During the reporting period, in the financial field were approved new legal acts and revised existing ones, approximating them as appropriately with EU directives and regulations. Both institutions, the Bank of Albania (BoA) and the Albanian Supervisory Authority (AFSA), took the necessary measures to strengthen their institutional capacities and address the recommendations of the previous Progress Reports. 9.1 Banking KeyMessages During the September 2014 – May 2015 period, Bank of Albania has continued the revision process of the regulatory framework in accordance with the provisions of the banking law, the Basel Committee recommendations, EU regulations and directives and developments in the Albanian banking system. Status of Legal Harmonization In line with the National Plan for European Integration 2015-2020, Regulation “On regulatory capital of banks” was approved by the Supervisory Council (SC) of the Bank of Albania (BoA) by the Decision no.69, dated 18.12.2014. Provisions of this Regulation are partly in line with the requirements of the new EU Regulation No.575/2013 of the European Parliament and of the Council of 26 June 2013 “On prudential requirements for credit institutions and investment firms”, and particularly with the provisions of part II which regulates regulatory capital. In line with the National Plan for European Integration 2015-2020, some amendments to the Regulation No.60, dated 19.08.2008 “For the minimum requirements of disclosing information from banks and foreign bank branches” were approved by the Decision No.25, date 01.04.2015, of the SC of the BoA. Regulation is partly aligned with Basel II/III requirements (Pillar 3 - on market discipline) and EU Regulation No.575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. Supervisory Council of Bank of Albania by the Decision No.07, dated 28.01.2015 approved some amendments to Regulation “On Foreign Exchange Transactions” (Foreign Exchange Regulation),in order to review and remove the requirements for documents, such as confirmation of tax office and customs certificates from the list of documents required by banks and non-bank entities, regarding commercial transfers. These amendments reflect the central recommendations of the mission of the International Monetary Fund, as part of Albania’s obligations arising under article VIII of agreement with the IMF. At the same time, amendments to the Foreign Exchange Regulation are approximated with relevant provisions of Articles 60-62 of the Stabilization and Association Agreement which regulates current payments and movement of capital. By the Decision no.19 dated 04.03.2015, the Supervisory Council of Bank of Albania approved some amendments to the regulation “On regulatory capital of the bank” which entered into force on April 10, 2015. These amendments aim to reflect the requirements of EU regulation (transitional provisions) regarding a gradual approach to the level of inclusion in the bank's regulatory capital, of Tier II capital with no more than a third (33.3%) of Tier I capital. Banks should include Tier II capital in the bank's regulatory capital up to the actual level (50% of Tier I capital) until 31.12.2016, and starting from 1.01.2017 this level should be up to 33.3% of Tier I capital. In line with the National Plan for European Integration 2015-2020, during the reporting period, Supervisory Council of Bank of Albania approved some amendments to the Regulation “On granting the license and exercise of banking activity of banks and branches of foreign banks in the Republic of Albania” by the Decision no.55, dated 01.10.2014.The aim of these amendments is to implement the recommendations outlined in the context of the joint IMF-World Bank FSAP mission (2013) on the assessment of the observance of the 29 principles of Basel Committee for an Effective Supervision (Basel Core Principles for Effective Banking Supervision). The Supervisory Council of the Bank of Albania by the Decision No.20, dated 04.03.2015, approved some amendments to Regulation "On the risk management from large exposures of Banks". These amendments are aimed at limiting of exposure with financial institutions (20 per cent of regulatory capital). Removing this restriction creates opportunities for banks to invest and to diversify investments in foreign currency (mainly deposits at foreign banks in the form of deposits and securities), taking into consideration the developments in the domestic interbank market. By decision no.26 dated 01.04.2015, the Supervisory Council of Bank of Albania approved some amendments to the regulation “On credit risk management by banks and branches of foreign banks” consisting on the abrogation of Chapter IV (Mitigation techniques for credit risk) and Annex 1 and 2 (as part of this chapter, attached to the decision) of this regulation. The regulation “On capital adequacy ratio” which entered into force of on 31.12.2014, addresses in a separate chapter - Chapter IV "Credit risk mitigation techniques", - the principles and recognition methods for credit risk mitigation techniques, according to the European Directives and Basel II. As credit risk mitigation techniques must not be double-counted, they are now already covered by Chapter IV of the Regulation "On capital adequacy ratio", bringing the need for the last amendments (abrogation of Chapter IV and annexes) in the Regulation “On credit risk management by banks and branches of foreign banks”.
Institutional Capacities With regard to administrative capacity, based on the implementation of the medium-term strategy of the Bank of Albania for the period (2013 -2015), the main objective of the Supervision Department is to ensure sound banking activity in Albania to guarantee citizens’ savings safeguard financial stability and contribute to the positive performance of the overall economy. The Supervision Department currently consists of 45 employees. According to the organizational structure Supervision Department is composed by 50 employees. Supervision Department in collaboration with the Department of Human Resources are at the stage of identifying potential candidates based on criteria of each profile in order to fulfill the vacant positions aiming to recruit individuals who will contribute to increasing the capacity of the Department of Supervision. During the reporting period September 2014- May 2015 administrative capacities of the Supervision Department has been increased by 7 new employees. During the reporting period, representatives of the Supervision Department have participated in the following activities:
Ongoing Tasks
9.2 Insurance and pension insurance Key Messages During the reporting period, AFSA consolidated its work in the drafting and revision of the regulatory and supervisory framework in the insurance and private pension market in order to approximate it further with the European Union acquis, pursuant to Article 89 of the SAA and to the recommendations of the Progress Report of the European Commission in 2014, and with the aim of further improving and enforcing these market. The main achievements for the reporting period were:
Status of Legal Harmonization After the entry into force of the law no. 52, dated 22.05.2014 "On the insurance and reinsurance activity”, the AFSA, pursuant to this Law drafted the following bylaws:
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