National Commercial Bank (equity)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 5730

Status Complete

Location

Albania

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 5730

Status Complete

Location

Albania

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

25 Jan 2000

Disclosure date

20 Dec 1999

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

EBRD equity investment in National Commercial Bank (NCB) within the context of the privatisation of this Albanian bank. The investment will enable NCB to strengthen its capital base and to restructure its operations in Albania, with particular emphasis on retail banking and lending to small and medium-sized enterprises (SMEs). This will be the first privatisation in the banking sector in Albania and the first major privatisation in the country since the collapse of the communist regime in the early 1990s. The privatisation of NCB is aimed at transforming the bank into a modern institution capable of becoming a leading universal financial institution in Albania, with particular emphasis on retail banking and SME lending.

Transition Impact

The privatisation of NCB will have a significant impact on the transition process by:

setting standards of corporate governance and business conduct in the beleaguered Albanian financial system. NCB will adopt a strict Operating Policy Statement, which will also include a Money Laundering Policy;
encouraging the development of a competitive financial market that can effectively attract foreign investment and meet the needs of the local population and the SME sector; and
providing a stimulus for the privatisation of other Albanian state-owned companies.

As a shareholder and with a representative on NCB's Board of Directors, the EBRD will play a key role in ensuring that the bank is managed in accordance with best corporate governance practices.

The Client

NCB is one of the two remaining state-owned banks in Albania. Historically, NCB was the main provider of credit to, and recipient of deposits from, the corporate sector, both state-owned and private. NCB has a network of ten branches covering the main cities of Albania and a staff of 477.

EBRD Finance

Equity investment of US$ 2 million (EUR 1.95 million), representing 20 per cent minus one share of NCB’s share capital.

Project Cost

Total equity investment from the EBRD, the International Finance Corporation and Kentbank, the sponsor, of US$ 10 million (EUR 9.76 million).

Environmental Impact

NCB will adopt and implement the Bank's "Environmental Procedures for Intermediated Lending through Local Banks", which will allow bank staff to identify, mitigate and monitor environmental risks associated with NCB's operations. By adopting such procedures, NCB will, in particular, enhance its own credit procedures, raise its clients’ awareness of environmental issues and support the enforcement activities of the environmental authorities of Albania.

Technical Cooperation

None.

Transition impact

ETI Score:40

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search