Analysis of the Albanian Banking System in the Transition Years

The Albanian banking system is a very important part of the economy as well as in terms of representation of the financial system, and for this reasons its development reflects a special interest. It began to “sparkle” in 1992 when first was established the two level system: Central Bank and the second level banks. In 1992 there were three state own banks: Saving Bank, National Commercial Bank and Agricultural Commercial Bank. During the last recent 20 years the banking system has made a significant progress through the expansion of the new private banks, privatization and restructuring of the state owned banks, expansion of the banking network, legislation improvements and technology development. Under this context, the aim of this paper is the analysis of the Albanian banking system in the last 20 years by evidencing the main events that have influenced our banking system. The analysis begins with a historical reference to the seven main phases, dating from 1863 until the recent time 2012. While the second chapter treats the main legislation features that boosted its own expansion as per the same period. And the last part argues on the banking sector developments according the total assets, loans, investments in securities, total liabilities, deposits, capital equity, profit and performance indicators etc.