Microfinance Institutions and Credit Unions in Albania : Regulatory, Supervisory and Market Development Issues

The objective of this report is to present an assessment of the current legal, regulatory, and supervisory framework in Albania for microfinance, as well as an assessment of institutions rendering microfinance services (MFIs), including the Savings and Credit Associations (SCAs) and credit unions (CUs), to identify future development priorities. Economic conditions have improved in Albania in recent years, but a significant percentage of the population is still considered below the poverty level. The report lists future development priorities for the SCAs and MFIs, emphasizing poverty reduction through microfinancing. Several MFIs, and one CU, expressed some desire to borrow from the World Bank. The report finds this promising, as long as it does not crowd out commercial sources that serve to integrate MFIs, CUs, and SCAs into the larger financial sector. The growth of SCAs might be enhanced by further consolidation of smaller SCAs into larger SCAs. Mergers based on joint objectives and bounds can expand the geographical coverage and clientele base, facilitate the increase of cash flows and access to capital, and achieve economies of scale in view of reducing fixed costs. Albania also wishes to obtain a banking license and focus exclusively on the microfinance market. A tax exemption enables CUs and SCAs to build up capital through retained earnings. Eliminating their tax exemption would either reduce their capital, or require that CUs replace the taxed earnings with other means of capitalization to maintain the same capital reserves. The report recommends that the Bank of Albania (BoA) should continue to work with the CUs on consolidating and strengthening the SCAs.

Saved in:
Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2008-06-17
Subjects:ABUSIVE LENDING, ACCESS TO CAPITAL, ACCESS TO FINANCIAL SERVICES, ACCESS TO FUNDS, ACCESS TO MARKETS, ACCOUNTING, ACCOUNTING STANDARDS, AGRICULTURAL COOPERATIVES, BANK INTEREST RATES, BANK LENDERS, BANK LOAN, BANK LOANS, BANKING LAW, BANKRUPTCY, BOND, BORROWER, BORROWING, BORROWINGS, CAPITAL ADEQUACY, CAPITAL BASE, CAPITAL GROWTH, CAPITAL REQUIREMENT, CAPITAL REQUIREMENTS, CASH FLOWS, CASH TRANSFER, COLLATERAL, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL LOANS, CONFLICTS OF INTEREST, CONSUMER PROTECTION, CREDIT ASSOCIATION, CREDIT ASSOCIATIONS, CREDIT BANK, CREDIT BUREAU, CREDIT BUREAUS, CREDIT HISTORIES, CREDIT INFORMATION, CREDIT INSTITUTIONS, CREDIT LINE, CREDIT LINES, CREDIT OFFICER, CREDIT PROGRAM, CREDIT RISK, CREDIT UNION, CREDIT UNIONS, CREDITORS, CREDITS, CURRENT ACCOUNT, CURRENT ACCOUNTS, CUSTOMER SATISFACTION, DEBT, DEBT COLLECTION, DEBT INSTRUMENTS, DEFAULTERS, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT MOBILIZATION, DEPOSIT SERVICES, DEPOSITOR, DEPOSITORS, DEPOSITS, DEVALUATION, DIVERSIFICATION, DOMESTIC BANK, DONOR SUPPORT, EARNINGS, ECONOMIC CRISES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIES OF SCALE, EQUAL RIGHTS, EXCHANGE RATE, EXTREME POVERTY, FAMILY FARMS, FARMERS, FINANCIAL ASSISTANCE, FINANCIAL CRISIS, FINANCIAL EDUCATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKET, FINANCIAL PRODUCTS, FINANCIAL RISK, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SECTOR REGULATION, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FISCAL AUTONOMY, FIXED ASSETS, FIXED COSTS, FORECLOSURES, FOREIGN CURRENCY, FOREIGN CURRENCY LOAN, FOREIGN CURRENCY LOANS, FOREIGN DEBT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RISK, FOREIGN EXCHANGE RISKS, FRAUD, FREE LOAN, FUNDING SOURCE, FUNDING SOURCES, FUTURES, GOVERNMENT SECURITIES, GROSS DOMESTIC PRODUCT, GROUP GUARANTEES, HEDGES, HOLDING, HOUSEHOLDS, INCOME TAX, INDEBTEDNESS, INDIVIDUAL LOANS, INFORMATION REQUIREMENTS, INFORMATION SYSTEM, INFORMATION SYSTEMS, INFORMATION TECHNOLOGY, INSTITUTIONAL REFORMS, INTEREST RATE, INTEREST RATES, INTERNAL AUDIT, INTERNATIONAL DEVELOPMENT, INTERNATIONAL STANDARDS, INVESTMENT BANK, ISSUANCE, LENDER, LENDING LIMITS, LENDING REGULATIONS, LIQUIDATION, LIQUIDATION OF COLLATERAL, LIQUIDITY, LOAN, LOAN CONTRACT, LOAN CONTRACTS, LOAN DOCUMENTATION, LOAN PORTFOLIO, LOAN PORTFOLIOS, LOAN REPAYMENT, LOAN REPAYMENT RATES, LOAN REPAYMENTS, LOAN SIZE, LOAN SIZES, LOCAL BANK, LOCAL CURRENCY, LOW INTEREST RATE, LOW INTEREST RATES, MACROECONOMIC STABILITY, MARKET DEVELOPMENT, MARKET DISCIPLINES, MARKET ECONOMY, MARKET PARTICIPANTS, MARKET PLAYERS, MATURITY, MFI, MFIS, MICRO FINANCE, MICRO LENDING, MICRO-ENTERPRISES, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MICROFINANCE LOAN, MICROFINANCE SECTOR, MINIMUM CAPITAL REQUIREMENT, MINIMUM CAPITAL REQUIREMENTS, MONETARY FUND, MONEY LAUNDERING, MONEY ORDERS, MONEY TRANSFERS, MORTGAGE, MOVABLE PROPERTY, MOVABLE PROPERTY REGISTRIES, OUTREACH, PAYMENT SYSTEM, PRIVATE CREDITS, PROFESSIONAL DEVELOPMENT, PROFIT MARGIN, PRUDENTIAL REGULATION, PRUDENTIAL REGULATIONS, PRUDENTIAL SUPERVISION, RATES OF INTEREST, REGULATORY FRAMEWORK, REMITTANCES, REPAYMENT SCHEDULE, REPAYMENT SCHEDULES, RESERVE, RESERVE FUND, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, RURAL CLIENTS, RURAL CREDIT, RURAL MARKET, SAVINGS, SAVINGS SCHEMES, SAVINGS SERVICES, SECURITIES, SELF-EMPLOYMENT, SHAREHOLDERS, SMALL BUSINESS, SMALL FARMERS, SMALL LOANS, SUPERVISORY AUTHORITIES, SWAPS, TAX EXEMPT, TAX EXEMPTION, TAX INCENTIVES, TAX-EXEMPT, TAX-EXEMPT STATUS, TECHNICAL ASSISTANCE, TRANSFER RISKS, UMBRELLA ORGANIZATION, UNEMPLOYMENT, URBAN AREAS, VALUE OF COLLATERAL, VILLAGE, VILLAGES, WAREHOUSE, WAREHOUSE RECEIPT, WAREHOUSE RECEIPT FINANCING,
Online Access:http://documents.worldbank.org/curated/en/2008/06/16371691/albania-microfinance-institutions-credit-unions-albania-regulatory-supervisory-market-development-issues
https://hdl.handle.net/10986/12899
Tags: Add Tag
No Tags, Be the first to tag this record!