Albania: Technical Assistance Report—Investment Funds and Interconnectedness Risks

This report relies on the information submitted by the AFSA and discussions with AFSA and BoA. Detailed data on the fund sector had been shared by AFSA and discussions with Authorities covered issues around (i) data reporting, (ii) risk analysis, (iii) regulatory framework and (iv) interlinkages. The fund sector has been expanding and remains highly concentrated. Since end-2019 the net asset value of Albanian funds has increased by 15 percent and accounts for around four percent of financial sector assets. The sector remains highly concentrated: (i) on the asset side, as domestic sovereign bonds account for most of exposures; and (ii) on the entity side, as the top fund represents 62 percent of the asset of the sector and the top 3 funds (all from the same manager) around 95 percent.