Albania Curbs Bank Exposure to Markets

Tirana, 28 October 2008 – Albania’s Central Bank is to limit the investments foreign banks in the country make to their parent companies, in an effort to thwart the effect of the global financial crisis.

According to the new regulations, foreign banks currently operating in Albania would not be allowed to invest more than 10 per cent of their capital in parent companies. Previously the limit was 25 percent.

The move also aims to counteract a possible economic slowdown by making sure that there is ample credit for the internal market.

Foreign companies currently control 95 per cent of Albania’s banking market. Austria’s Raiffeisen, Italy’s Intesa Sanpaolo, Greece’s Alpha Bank and France’s Societe Generale, which owns 75 percent of Banka Popullore, are among the largest. Only Credins bank is owned by a consortium of local investors.

According to recently published report, financial institutions in southeast Europe remain bullish about growth prospects, despite the global downturn.

The Balkan banking sector has registered strong growth rates over the past year despite the financial crisis hitting Wall Street, EU and Asian markets, a Raiffeissen Bank report, CEE Banking 2008, says. Read more: Balkan Banks Feel Blessed by Isolation

Low levels of regional exposure to international financial institutions, weak integration into international markets and the strong capitalisation of international banks operating in the region are some of the cited factors behind the region’s apparent immunity to the economic downturn.

Source: BalkanInsight.com

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Posted by admin on Oct 28 2008. Filed under Banking & Finance, Economy, General News, Invest-Inform. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry