Sejko: Empowering internal audit for stability, governance

Governor Gent Sejko highlighted internal audit as a fundamental pillar of financial stability, institutional integrity, and trust for the Bank of Albania and the broader banking system.

He noted that the Law on banks and the regulatory framework emphasize internal governance, risk management, and independent control functions, with internal audit safeguarding financial institutions' soundness.

In a rapidly transforming financial environment, marked by digitalisation, technological innovation, and emerging cyber risks, internal auditing's role has become increasingly strategic.

It now functions beyond a mere control mechanism, serving as a crucial component in risk prevention, process improvement, and supporting sound decision-making.

The Bank of Albania has actively strengthened its internal audit function, aligning it with international standards as a crucial third line of defence.

This includes implementing external quality assessments, improving reporting lines, and engaging in strategic initiatives like Operational Risk Management.

Albania's progress in harmonising internal auditing standards with European best practices is significant.

The 2025 Global Internal Audit Standards (GIAS) are seen as a key step towards modernising the profession and enhancing institutional quality, reflecting Albania's commitment to stronger, more transparent institutions.