Albania

Abstract

Abstract Albania, a former Communist regime with a centralized and inefficient economy, is currently striving hard to keep apace with economic development. Economic growth and the opportunity to break free from poverty depend on a dynamic business sector, unencumbered by corruption, red tape or needless legal restrictions. Today, the fastest growing sector of the economy is in the area of financial services. Although many of the divisions and sectors within the area of financial services are at an embryonic stage, the relevant regulatory framework has been in the process of development for some time. With the banking system much more stabilized, and an increasing number of foreign banks establishing a presence in Albania, confidence is growing and the market is beginning to open up to new financial products and instruments. Albania has worked towards deregulating the financial services sector to the extent that it will operate in line with international standards and follow the path of European Union (EU) countries. A new Albanian Financial Supervisory Authority (AFSA) was established in 2006 to govern the three financial areas of insurance, securities and certain non-banking financial services. The regulatory framework is being strengthened to support an increasingly diverse financial market.