“Banks, ‘problem’ for the economy”
05/02/2015 00:00
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The behavior of foreign banks in Albania and their plans for the future
is not a new concern for the Albanian economy. In the recent report of
the monetary policy, the Bank of Albania warns that some of the foreign
banking groups that operate in Albania might reduce their investments
and activities in our country.
The Bank refers to the results taken by direct questions from five foreign mother banks, which own 54% of the Albanian market.
The report says that although some banks are ready to enlarge their operations in Albania, at least two of them declare that they aim to reduce their operations and their presence in the Albanian market.
The Bank of Albania says that the mother banks keep seeing Albania as a market with a low or average potential, and most of them are not happy with their positioning in our economy.
The withdraw of the banking groups from Eurozone countries is a phenomenon that hasn’t affected only the Albanian economy. Other development economies in the region are facing the same situation, a tendency that started after the crisis of 2009.
The phenomenon was more emphasized in Albania in 2012. Due to the policies dictated by their mother banks, and the rules imposed by the EU, the foreign banks started reducing their crediting of the Albanian economy.
The fast pace of loans went to almost zero, and then it even dropped. The negative consequences in the national economy were immediate with the economic growth, which went down from 3% to 1%.
Bank of Albania experts say that the behavior of Banks will decide the progress of the Albanian economy in the future. The financial system before the crisis was one of the main contributors in the economic growth. But it took a different sense especially after 2012.
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