Banking System in Albania. Problems of Its Development PDF Download

Author: Shkëlqim Cani
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

View

Book Description

Author: Valbona Çinaj
Publisher: GRIN Verlag
ISBN: 366856003X
Category : Business & Economics
Languages : en
Pages : 77

View

Book Description
Document from the year 2017 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: This paper presents the effects that affect the current effect of the Credit Information System (CIS) in the Albanian reality in order to reduce credit installment delays during the credit cycle in the banking sector in Albania. There are a number of problems with bad credit for borrowers, as well as debts on lenders. From a lender's performance analysis one of the main causes is the lack of information exchange in the lending market. Also, the credit information system acts as a mediator and regulator of asymmetric information and also to increase transparency in the lending market. In the interest of all stakeholders in Albania (financial institutions, supervisory institutions, government, consumers, etc.) towards financial stability and economic growth in Albania, CIS becomes increasingly necessary towards the consolidation and maintenance of a sound and sound financial system. Credit scoring as a product of CIS through the application of data mining techniques is a growing trend. The decision tree, basic classification rules, expert systems, and any other techniques obtained outside the mini graph techniques and various hybrid combinations are usable and welcome in the scoring industry in the banking sector due to their explicit acceptance / rejection conditions of applicants. Selected literature addresses the challenges faced by banks' lending practices and the role of the Credit Information System (CIS). The growth in demand for loans has led to the need for more formal and more objective methods (generally known as credit scoring) to help credit providers decide whether to grant loans to a borrower, through technology advancement Computer and exponential database growth. In some research it is noted that based on information from some countries around the globe, it is concluded that the existence of credit registers is linked to increased lending volume, lending to business, improved access to finance and a more stable banking sector. The same situation is also presented for Albania, according to this paper.

Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN: 1484339061
Category : Business & Economics
Languages : en
Pages : 95

View

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 : 15

View

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: Sofika Nazaj
Publisher:
ISBN:
Category :
Languages : en
Pages : 10

View

Book Description
The Albanian banking system coming from a centralized economy's heritage went through a long transition phase, to be converted, during recent years, into a modern banking system, reflecting the developing market economy in Albania, with many country-specific features. Given such characteristics, and the fact that the new market economy in Albania with still-to-be-consolidated businesses and relatively a big number of banks, with lots of cheap funds to lend, there has been room for a stiff, if rather unfair competition among banks for market share, thus causing a low-quality loan portfolio and liquidity problems in the market. New entrants in the banking market, mainly foreign ones, may have induced too much entry and relatively too many bad loans. Notwithstanding positive effects of banking competition during the entry phase, banks have adopted and seek very high targets on lending, therefore funding risky projects, which failed to produce success stories. When twinning this fact with the actual global and local financial crises, the situation is practically affecting the stability of the banking system in Albania. The paper analyzes and investigates how bank competition affects efficiency of credit allocation, using the historic data of the last decade, and provides some recommendations on improving lending practices, procedures, portfolio diversification, aiming to preserve the stability of the banking system in Albania.

Author: Arjeta Hallunovi
Publisher: GRIN Verlag
ISBN: 3668732558
Category : Business & Economics
Languages : en
Pages : 126

View

Book Description
Scientific Study from the year 2018 in the subject Economics - Finance, grade: 12, , language: English, abstract: This study examines the determinants of profitability of commercial banks in Albania. These determinants are categorized into two groups, internal factors that are the bank specific factors and external factors that are further divided into macroeconomic factors and industry specific factors. The main objective of the study is to determine the factors affecting the profitability of commercial banks and making some recommendations, that maybe can help the management and policymakers. A panel data with 16 commercial banks in Albania is analyzed for the period 2009-2014. Two indicators are used (dependent variables) for the measurement of profitability, return on assets (ROA) and return on equity (ROE). Banking specific factors that are used in this study include variables such as bank size, asset management, credit risk, liquidity of assets, capital adequacy, operational efficiency and cost of financing. On the other hand is taken into consideration only one industry specific factor, which is the concentration and macroeconomic factors such as GDP, inflation and exchange rate. To meet the main object of the research, the study is based mainly on quantitative research method, which is supplemented by a qualitative method. Quantitative data were obtained mainly from the financial statements of commercial banks, by INSTAT, Bank of Albania, and World Bank, in order to make empirical analysis needed to identify and measure the determinants of bank profitability. In particular, multiple regression analysis was used to measure the impact of the determinants of bank profitability. On the other hand, qualitative data were collected through unstructured interviews conducted with executives of finance in the albanian commercial banks. To realize empirical analysis were used the software SPSS 22 and Eviews 7.

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

View

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

View

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: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451876254
Category : Business & Economics
Languages : en
Pages : 38

View

Book Description
This paper discusses key finding of the Financial System Stability Assessment, including Reports on the Observance of Standards and Codes (ROSC) on the Banking Supervision and Payment Systems in Albania. The assessment reveals that the Albanian financial system is not highly vulnerable to immediate macroeconomic or financial sector shocks. However, accelerating credit growth and increased competition arising from the recent privatization of a dominant (savings) bank may put pressure on the banking system. The financial system is also at an early stage of development.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451800592
Category : Business & Economics
Languages : en
Pages : 80

View

Book Description
This paper describes a evolution of the financial system in Albania. The paper highlights that a two-tier banking system was created following passage of a new Central Bank Law and Commercial Banking Law in April 1992. The State Bank of Albania became the Bank of Albania and retained only the functions of a central bank. Its commercial operations were hived off to become the National Bank of Albania in July 1992, which was subsequently merged with the Albanian Commercial Bank to form the National Commercial Bank of Albania on January 1, 1993.