Albanian Financial System in Front of Global & Financial Crisis - A New Approach to Ensure Long-Term Sustainability PDF Download

Author: Elvin S. Meka
Publisher:
ISBN:
Category :
Languages : en
Pages : 15

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Book Description
The intertwined global financial and economic crisis of 2008, unfolded the total exposure of the Albanian financial system in front of the systemic risk, by the Albanian banking system, as the absolute pillar of providing funding and intermediation in the economy. This cartel-like financing highway of the economy, developed by an oversized bank-based economy, could and practically downloads all the issues, pitfalls and inefficiencies of the banking system, on the shoulders of companies and individuals as borrowers, especially in times of economic contraction or crisis. This one-pillar financial system in Albania does not offer guarantees for a long-term sustainable economic development, which in turn, calls for a more balanced development of this system. This paper proposes that, a more balanced financial system, subject to inter sectorial competition, with the presence of ever-developing nonbank pillar, the development of capital market and its respective long-term instruments and institutional investors, along with new areas of banking business (agriculture funding, private banking, etc.) could make a valuable contribution, not only to the sustained economic growth, increased competition, but also in alleviating the factors and premises, which ignited and energized the unprecedented global & financial crisis of 2008.

Author: M. Ayhan Kose
Publisher: World Bank Publications
ISBN: 1464815453
Category : Business & Economics
Languages : en
Pages : 403

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Book Description
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN: 1484338790
Category : Business & Economics
Languages : en
Pages : 95

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Book Description
This paper discusses the Financial System Stability Assessment report on Albania. The IMF report states that the Albanian economy is weak, macroeconomic imbalances are large, and the financial sector faces several risks. Capital-to-asset ratios are sizable, but banks hold large amounts of government bonds that expose banks to sizeable losses in case of a sovereign debt re-pricing and balance sheets have deteriorated as a result of a rapid increase of nonperforming loans (NPLs). The authorities have taken steps to reduce the existing stock of NPLs with technical assistance from the World Bank.

Author: Elvin S. Meka
Publisher:
ISBN:
Category :
Languages : en
Pages : 12

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Book Description
The Albanian banking system is a relatively new system and has been developing mainly during the last 10-15 years, whereas its significant growth and progress was recorded 10 years ago, via the privatization of Savings Bank. Along with privatization, the development path included, also, greenfield investments form foreign banks and capital pooling by Albanian venture capitalists. This process has undoubtedly been crucial and instrumental, in providing the economy with the so-much-needed finance, as the actual ratio of loans-to-GDP stands at 42%, starting from a negligible basis, during 1990s. The Albanian banking system, as well as the global financial system, felt the pinch of the global financial and economic crises, through two almost simultaneous warning events: the deposit withdrawal from the fourth quarter of 2008 till around mid-2009 and the steep increase in non-performing loans, which almost doubled in 2008. Actual data show a stabilized rate of non-performing loans, which indicate that we are now in the upper frontier of natural adjustment of credit to economy. The now days reality is putting the Albanian banking system in front of serious challenges, like: (1) the “paradox” of ever-growing external financing sources and the (2) “difficulty” to invest disposable funds efficiently, (3) effective management of banking system's maturity phase, and (4) continuous deepening of the Albanian financial system.Conclusively, the Albanian banking system must be obviously prepared to manage and cope with macroeconomic challenges, in the frame of some-years moderate economic growth, as well as the unavoidable consolidation of banking operators, typically with M&A process, spurred by the need to improve the economic efficiency and eventual increase of competition by non-bank financial institutions.

Author: El Bachir Boukherouaa
Publisher: International Monetary Fund
ISBN: 1589063953
Category : Business & Economics
Languages : en
Pages : 35

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Book Description
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.

Author: OECD
Publisher: OECD Publishing
ISBN: 9264852395
Category :
Languages : en
Pages : 94

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Book Description
This edition of the OECD Sovereign Borrowing Outlook reviews developments in response to the COVID-19 pandemic for government borrowing needs, funding conditions and funding strategies in the OECD area.

Author: National Intelligence Council
Publisher: Cosimo Reports
ISBN: 9781646794973
Category :
Languages : en
Pages : 158

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Book Description
"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.

Author: Marc Dobler
Publisher: International Monetary Fund
ISBN: 1513567780
Category : Business & Economics
Languages : en
Pages : 63

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Book Description
The global financial crisis (GFC) has renewed interest in emergency liquidity support (sometimes referred to as “Lender of Last Resort”) provided by central banks to financial institutions and challenged the traditional way of conducting these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this paper we focus on, for the most part, the provision of idiosyncratic support, approaching it from an operational perspective; highlighting different approaches adopted by central banks; and also identifying some of the issues that arose during the GFC.

Author: Dirk J. Bezemer
Publisher: Nova Publishers
ISBN: 9781600210723
Category : Business & Economics
Languages : en
Pages : 180

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Book Description
This book is a contribution by a diverse group of authors from the academic, business and policy advice communities to our understanding of recent social and economic developments in Albania. The motivation for this book is that there are lessons of wider importance to be learnt from the fascinating story of recent Albanian developments. Michael Kaser opens the book with a recounting of the country's history and political economy before and during transition. He brings to the job nearly six decades of professional experience as a diplomat and academic and an intimate knowledge of Albania. This chapter provides a detailed political history during transition up to late 2004. Dirk Bezemer contributes an analysis of the collapse in early 1997 of the economy and society brought about by Ponzi schemes. He links the lack of productivity growth and the growth of a 'virtual' financial sector to policy practice focusing on macro stability and state abstinence from interfering in sectoral issues - policies which are still common in many transition and developing economies. Albania has implemented tight monetary policy, stabilised the exchange rate, implemented prudent fiscal polices, and achieved a significant reduction in domestic borrowing, all contributing to the decline of the overall deficit. Based on his expertise as an IMF analyst, Treichel discusses Albania's macroeconomic prospects. Nevila Konica documents the large Albanian emigration flows during transition, leading to an estimated ten percent of the population working outside Albanian territory. Based on her large primary survey data set, she explores personal attributes that characterise emigrants, as well as the extent of the 'brain drain'. She finds that remittances from emigration have been vitally important to Albania's economy by contributing to household incomes and reducing domestic unemployment. Klarita Gerxhani delves deeper into the nature of the informal economy and presents key insights from her original academic research based on fieldwork in Tirana. In her study of the street vending sector she traces its emergence to clear 'push' and 'pull' factors. emigration issue in the broader context of labour market developments. They analyse the large regional differences in unemployment rate, the large share of long-term unemployment and the persistently higher-than-average unemployment rate and falling participation rate for women. They also conclude that emigration reduced the pressure of unemployment in the labour market and on the government's budget, and contributed to financing imports, consumption and investments through remittances. Gloria La Cava uses her research experience as World Bank Senior Social Scientist specialising in the region to address, jointly with co-author Rafaella Nanetti, the changing socio-economic conditions that Albanians face. They focus on the nature of people's vulnerability resulting from a loss of social support during the transformation years, and on social programs addressing new needs. World Bank analyst Malcolm Childress discusses the 'unfinished business of land and property reform' in Albania. emergence of a dynamic land market and the sustained supply response which was expected. Urban property privatisation has fostered a construction boom in Tirana and along the coast and the creation of large areas of informal settlement on the outskirts of Tirana and Durres. Childress provides an insightful discussion of possible consequences. In the final chapter on agriculture, Pasquale Pazienza highlight key problems of land fragmentation and under-investment (particularly in the irrigation system), illuminating the current situation with the post-war history of agricultural and land reforms. He explores the determinants of productivity in a production function framework taking a long-term view, and draws out implication for what is still the largest sector in Albania's economy.

Author: Arjan Kadareja
Publisher:
ISBN:
Category :
Languages : en
Pages : 7

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Book Description
Albania and Kosovo, as two Albanians' states in the region, are trying to bridge their national economies on a permanent basis. Although in its first steps such common vision, willingness and aspiration by many interest groups in both states need to be materialized by identifying real and practical opportunities and ways for a sustainable and coordinated cooperation between both economies, aiming at their final harmonized integration, within Balkan region.Typically, the financial integration of both countries' banking systems seems to be one of the most important and probable way to ensure their economic integration. There are several substantial reasons, which could establish the suitable premises and favor such a financial integration, along with some obvious positive effects, the latter could provide to both financial systems and economies, respectively. Our discussion is particularly focused on Albania's public debt and on possible positive effects, such integration could produce. Such particular cooperation and integration could serve as a hotbed and platform for a possible and practical cooperation & integration among Balkan states, which share similar features, in terms of economic development pattern, its stage of advancement, established goods & services markets and regional positioning.