It endorsed the account I have read from the Approach Document, but added one important further condition, namely that we do not wish to see non-EEA branches undertaking critical retail banking functions (like taking deposits) beyond de minimis levels unless there is some good reason and importantly there is a very high level of assurance on resolution. In particular, we think that new non-EEA branches should stick to straightforward wholesale banking, of the type that supports world trade and capital flows. Resolution will be a key deciding factor in the PRA’s judgements, and it is thus where we will place emphasis when forming a view on our risk appetite towards branches operating in the UK. We will therefore expect assurance from the home state regulator over the recovery and resolution plans and assess if the plans adequately cover the UK branch’s activities. For banks with small UK activities we will expect to gain a level of assurance that is relative to the scale of the UK activities. The PRA’s policy towards branches is part of our general approach set out in the light of the experience of the crisis. It places emphasis on recovery and resolution, and we will expect very clear and credible assurances from the parents of banks wishing to operate as branches and from the home state authorities.
During 2004, Albania’s balance of payments recorded a flow of financial assets and capitals of about 1.5 times higher than the previous year. The rise of inflows in the financial account and the non-deepening of current deficit brought about the increase of foreign reserves by about USD 290 million over 2004. Albania’s foreign reserve is sufficient to cover about 5.2 months of imports of goods and services. 4  Government debt including other sectors debt guaranteed by Government. BIS Review 38/2005  3  Notwithstanding the positive developments of the recent years, the economic growth and the macroeconomic stability of the country are two parameters, which, according to our consideration, cannot and should be considered as issues already accomplished. The high trade deficit requires the ability to find stable long-term coverage resources, especially to promote foreign direct investments, which will raise the productive capacities of the Albanian economy. A major interest should be given particularly to the sectors such as agriculture and tourism. Fiscal policy must continue to conserve its positive contribution in the consolidation of the macroeconomic stability, a contribution being expressed in the reduction of budget deficit, in the increase of income and in the establishment of priorities according to the National Strategy for the Socio-economic Development, in the performance of budget expenses.