The Role of the Bank of Albania as a Supervisor of the Banking Market: Legal Perspective

Abstract

This paper aims to examine, describe and rise critical issues on the role of the Bank of Albania within the Albanian Banking system. The independence of this institution is examined under the provisions of the Constitution and the law on central bank as the main authority which guarantee the safeguard of the system and an effective control. The relationship of the Bank with the bank of second level 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 Bank of Albania to foster competition is one of the most important, due to its obligations in the EU integration process. DOI: 10.5901/mjss.2015.v6n1s1p423