1. Audit Committee in Albania Legal framework Law 9226 /2006 “On banks in Republic of Albania” Law 9901/2008 “On entrepreneurs and commercial companies” Corporate Governance Code approval on late 2011 Regulation no 64 / 2012 of Banks of Albania “ On core management principles of banks and branches of foreign banks and criteria on the approval of their administrators

2. Responsibilities of Audit Committee ref: Albanian legal framework law 9662/2006 audits and supervises accounting procedures and internal control of the bank, including the procedures defined by the Bank of Albania, and supervises the implementation of these procedures audits the bank accounts and respective registrations; considers internal audit reports and monitors the way conclusions from such reports are dealt with; c) proposes the external auditor and realizes the communication between him and the internal audit of the bank; d) evaluates the financial situation of the bank based on the report of the external auditor; e) controls compliance of the activity of the bank with laws and bylaws and notifies Board of Directors of the bank about the conclusions; f) gives an opinion to the Board of Directors of the bank under request ; g) approves the financial reports and statements prepared by the bank for disclosure

4. Role of Audit Committee Independent oversight and monitoring of the company`s financial reporting internal controls and Company`s risk management policies and programs Insuring accurate and transparent disclosure Challenge : Audit Committee Effectiveness and enhancing performance - Effective use of AC for corporate governance - Effective functioning of AC - Assessing AC effectiveness