National Bank of Albania prepares a law on the way it will act if one of the second-tier banks collapses. This draft “For the recovery and the extraordinary intervention in banks of the Republic of Albania” has been already submitted to the parliament. In the respective report the Albanian National Bank stressed that financial crisis evidenced the insufficiency of instruments for an efficient treatment of these banks whose financial basis are not solid or are collapsing. During this crisis a number of countries used tax-payers money to save banks from liquidation. They were supported with liquidities by the central bank or through warranties given by the state.

This draft aims to give additional power to the Extraordinary Intervention Authority (EIA), part the of Albanian Bank, including for example the right to dismiss and replace bank’s administrators and board of directors, the right to appoint a special administrator, the right to transfer shares, actives and bank’s obligations to a third part without asking for shareholders or creditors’ consent.