Market and Banking Competition in the Frame of the Financial Crisis: Albanian Case

Abstract

Albanian banking system is the most developed component of the financial system. Since the creation of the Albanian banking system with two levels in 1992, and its subsequent liberalization, the Albanian banking market has undergone substantial changes. Albanian banking system consists of 16 wholly owned private banks of which the majority are foreign-owned and only 3 are domestically owned banks. The main purpose of this paper is to study the Albanian banking market over the last decade through indicators that express market competition as one of the main directions of its development. The article refers to the beginning period of the global financial crisis which had an impact in the Albanian banking market. To achieve this goal are used theoretical knowledge and indexes that are used to calculate the level of competition in the banking market. Working methodology is based on statistical analysis of secondary data obtained from the Bank of Albania, commercial banks operating in Albania, the Albanian Ministry of Finance etc. Through the analysis of market indexes will try to give an overview on the current situation of the Albanian banking market. The end will conclude in several features highlighting banking markets in Albania and provide some recommendations based on the experience of other countries and the opportunities for such development in the Albanian banking market.