Page 30 - BKT Annual Report 2024 EN

Finance Group

The journey through 2024 was like a roller coaster ride Deposit Insurance Agency, has also managed the yearly
with highs, lows and surprises around the curves. On the affirmation process of the credit ratings from JCR-ER
economic front, inflation and economic growth made the Rating Agency, being concluded with very satisfactory
highlines and markets spin. In most countries, inflation ratings assigned to the Bank in November 2024, affirming
seems to have been tamed as reflected from looser its rating on the Long-Term National Scale as ‘AAA (Alb)’,
monetary policy stances and decreasing key policy the highest investment grade, along with a ‘Stable’
rates. However, there are still concerns on whether the outlook. In addition, the Group handled successfully
strategies employed to curb inflation where timely and during June 2024 the yearly review process of Quality
appropriate. Economic growth was uneven among major Management System ISO 9001:2015 with TUV Austria,
economies and continued to be confronted with the by confirming the full application of the respective
Russia-Ukraine war and the mayhem in the Middle-East. standards in all the branches operating in Albania.
These events have maintained high geopolitical tensions
and among many factors pose threats to the availability One of the requisites to achieve operational excellence
of energy supplies and safety of trade routes. in banking, is diligent and timely control of accounts
and transactions. This is an area that might be often
Albania continued its economic and financial considered in the background of the core activities but
development path through 2024 supported by non the less bears a high relevance to the profitability
the positive contribution generated by the internal of the institution. The activities performed by Financial
consumption, investments and the services sector, Control and Accounting Department support the
where it can be noted the increasing impact of tourism. Bank to ensure the correct flow of a variety of banking
Economic development, in addition to the monetary transactions, correct application of accounting
policy stimulus and a low inflationary environment, has standards, internal regulations and compliance with
been sustained by banking lending and expanding fiscal rules.
payment tools that provide cost-effective and faster
payment options that are vital to the economy. Finance Group coordinates as well the Bank’s efforts
on enhancing resilience and sustainability to withstand
The year 2024 might be marked as the year when the unexpected shocks. Under this prerogative, the Capital
Artificial Intelligence (AI) proliferated opening new Compliance Department, in line with the internal action
development frontiers in the labor markets, business plans and the recommendations provided by Bank of
models and analytical thinking. A variety of AI models Albania’s Resolution Authority, has resourced its activity
were made available for wide public use. These models in three main directions on: assessing and ensuring the
can be integrated in various shapes and forms to existing Bank’s recapitalization requirements, enhancing the
technologies and will revolutionize the way businesses internal regulatory infrastructure and monitoring and
operate and develop their activities, including the reporting on resolution indicators.
banking system. In this global hype, our Bank is striving
to employ the technology to improve efficiency and In 2024, Bank of Albania has announced the first-
security and enhance customer experience. time application of the countercyclical capital buffer
for Albania at 0.25% by June 2025, as part of the
Banka Kombëtare Tregtare has been successfully macroprudential framework. The application of this
navigating these dynamics and embracing the innovation buffer to smooth the financing cycle and to prevent the
wave. In this ride, Finance Group is the bridge that uncontrolled occurrence of risks, demonstrated the
connects the business goals and objectives with the important role of the banking system as a tool of securing
performance of the Bank. The Group exercises its mission a sound and safe financial intermediation.
by producing accurate, timely and reliable financial
reporting, analytical performance analysis as well as Technological developments produce new types of risks
coordinating and controlling the capital performance, that might harm both the Bank and its clients. To detect
financial budgets and business plans. In the area of and prevent such risks from materializing, the Bank
monitoring and controlling, in 2024 the Group was has strengthened further its arm responsible for Fraud
expanded with the Fraud Prevention and Detection Prevention and Detection. The Department diligently
Department, whose role is fraud risk management monitors and analyses transactions performed through
through a deliberate, objective continuous prevention all channels, internal and external, and strives to identify
and detection activities. possible suspicious or fraudulent activities and take the
necessary measures to neutralize such attempts. In this
The Finance Group, with the direction of Financial context, it has been started the implementation of an
Reporting and Budgeting Department, in addition to automated full-scale fraud detection system, which is
closely coordinating various external statutory and expected to be wholly operative during 2025, including
group audits, and inspections by regulatory bodies; BoA, also all Bank’s subsidiaries.

30 BANKA KOMBËTARE TREGTARE