The Role of Foreign Banks in the Albanian Economic System

Banks and Bank Systems, 5(2), pp. 59-69, 2010

Posted: 21 Jul 2018

See all articles by Raffaella Barone

Raffaella Barone

University of Salento - Department of Law

Donatella Porrini

University of Salento - Department of Economics and Mathematics and Statistics

Date Written: 2010

Abstract

The aim of this paper is to analyze the role of foreign banks in the restructuring process that has characterized the Albanian banking system in transition from the planned economy to the market economy. The backward state in which the Albanian economy was left after the fall of the communist regime made necessary a plan of reforms of the legal and financial system. The new plan of rules in the subject of regulation and banking supervision fostered the opening of new banks and new branches which increased both the demand and the supply of credits to the private sector. On the assets and deposits side, at the present, the banking system of Albania is highly characterized by the presence of foreign banks. Assuming that, on the one hand, an easier access to credit allows small enterprises to develop and contribute to the economic growth of a country and, on the other hand, that only an efficient banking system lays the basis for an easier access to credit, in this paper we will concentrate mainly on the Albanian banking system with special attention to the role of foreign banks.

Keywords: Bank Competition, Financial Stability, Transition, Foreign Banks

JEL Classification: G21, G28, K22, O23

Suggested Citation

Barone, Raffaella and Porrini, Donatella, The Role of Foreign Banks in the Albanian Economic System (2010). Banks and Bank Systems, 5(2), pp. 59-69, 2010, Available at SSRN: https://ssrn.com/abstract=3204371

Raffaella Barone (Contact Author)

University of Salento - Department of Law ( email )

Campus Universitario - Via Li Tufi
LECCE, LE 73020
Italy

Donatella Porrini

University of Salento - Department of Economics and Mathematics and Statistics ( email )

Piazza Tancredi, n7
Lecce, 73100
Italy

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