Albania proposes increasing bank deposit insurance to 6 million lek

The Albanian government has proposed new legislation to strengthen deposit insurance and enhance the stability of the banking and financial system. The draft law, released by the Ministry of Finance for public consultation, outlines a gradual increase in the coverage limit for bank deposits from the current 2.5 million lek to 6 million lek.

The proposal aims to align Albanian legislation with European Union standards. Upon Albania's accession to the EU, coverage for both banks and credit savings companies is expected to reach an equivalent of 100,000 euros.

Significant changes include expanding the categories of eligible depositors. The new scheme would include non-profit organizations, foundations, political parties, local government units, schools, hospitals, and bank directors, administrators, and their families, as well as shareholders holding at least 5% of a bank's capital.

Additionally, the draft law introduces a mechanism for temporary balance protection, allowing individual depositors to potentially receive additional compensation of up to 15 million lek for specific funds—such as those from real estate transactions, inheritances, or pensions—transferred within six months of an insurance event. The new regulations are proposed to take effect starting July 1, 2027.