The institutional role of the Albanian Financial Supervisor Authority

Abstract

This paper aims to examine, describe and rise critical issues on the role of the Albanian Financial Supervisor Authority within the Albanian financial system. The independence of this institution is examined under the provisions of the Law and secondary legislation as the main authority which guarantee the safeguard of the system and an effective control. The relationship of the Authority with the operators of insurance, financial market and pension funding schemes is driven by the fulfillment of its institutional role: the supervision of a new and unestablished market. The banking market, on the other side, moves from monopoly to competition and there are findings that suggest an oligopoly created in Albania. Thus, the important role of the Authority to foster competition is one of the most important, due to its obligations in the EU integration process. Its institutional role and its prerogatives are examined in order to determine if there is a complete and adequate regulation of the system.