Albania Financial System - Case Study Example

Only on StudentShare

Extract of sample
Albania Financial System

Other sectors of the country's financial system are not large enough to be systematically important. How ever, growth in the insurance sector is rapid and the fear is that problems within this sector may undermine confidence in the institutions (Ingves and Dappler, 2005).
The Bank of Albania (BOA) is at the hem of the financial system, setting the rules, ensuring fair play. It is the keeper of the government accounts, carry out and negotiate government lending and borrowings. It also monitors the other institutions (Commercial banks and other forms of depository institution.) It issues and revokes licenses and do not compete with other institutions in ordinary business operations, but uses its lender of last resort policy, and open market operations to bail the economy and other banks out of recession (Article 16 of Law No.7491, dated April 29, 1991).
Other institutions include, state banks, banks limited by shares, cooperative banks and private banks with Albanian capital exclusively. Private or state banks with Albanian and foreign capital, and private banks with foreign capital. Membership deposits and credit are open to both physical and legal persons. ...
Download paper


The financial system exists to facilitate, a settlement and the flow of funds from one party to another. In such a system, financing is easily raised and allocated with the risk associated with such financing easily managed A developed financial system is one that has a secure and efficient payment system, security markets and financial intermediaries that arrange financing, and derivative markets and financial institutions that provide access to risk management instruments (
Author : denesikserena

Related Essays

Compensation and Benefits - Financial Reward System
It should also consider that each person working in the organization receives appropriate financial recognition for their i­ndividual as well as group contributions in the organizational performance (Derek Stockley, 2012). This paper is aimed at developing a financial reward system of a marketing firm with a total strength of 75 to 100 people. The paper will include all the theoretical and legal perspectives regarding job evaluation, wage surveys, incentives, pay equity, benefits and compensation strategy. Hereby, the prime objective of this paper is to present the financial reward system to...
7 pages (1757 words) Term Paper
Business financial system analyst
The aim of this essay is to outline the business model that the business analyst develops in an effort to determine the projects potential success or failure or whether the risk free rate should be used as the alternative of the financial model. The investment sector chosen is the financial sector. Choice of Investment Financial sector can be defined as the stock category that contains the firms whose main job is the provision of services relating to finance to the commercial, as well as the retail customers. The sector comprises of entities ranging from banks, insurance companies, and...
8 pages (2008 words) Essay
Apparently, Albania has also been strongly affected by the impacts of globalization in almost every sphere of its economic environment (Fulani, 2012). Based on this notion, the discussion henceforth will attempt to analyze the history of Albania and the transactional era of the country, considering its post-independence era since the 1990s. Historians and economists have often argued that most of the changes witnessed in the economic structure of Albania took place during the 1990s, after its independence. For instance, at the post independent era, Albania began moving towards global open...
15 pages (3765 words) Essay
Financial system
Financial instruments are paper documents. Yet just as a surgeon uses instruments as financial instruments to undertake crucial exchanges of financial resources. They also can use financial instruments to help reduce the risks of financial loss.
11 pages (2761 words) Essay
Albanias Pyramid Schemes in the 1990s - Financial Fraud
Lack of proper financial institution and securities markets encouraged the Albanians to look for alternative investment opportunities such as the pyramid schemes. This paper examines the effects of the pyramid scheme on the local economy.
11 pages (2761 words) Case Study
Got a tricky question? Receive an answer from students like you! Try us!