DEVELOPMENT OF NONBANKING FINANCIAL MARKET THROUGH FISCAL INCENTIVES: ALBANIAN CASE

An efficient financial market in any economy stimulates the economic growth through mobilizing the savings and promoting the investments. The Albanian economy has passed through a long period of transition which means a transformation of all the financial market and institutions. But not all the financial institutions are uniformly developed. Actually more attention is given to the transformation and development of the banking industry and less to the non-banking markets i.e. insurance, pension funds and securities market. Our paper is focused on these segments of the financial market, which account about 10 percent of the overall financial market. This little interest about these markets is explained by the mentality and culture of the population, the lack of knowledge about financial products, the passive role of government etc. There are many ways to stimulate and promote the development of these markets by the government and the market operators as well. The economic literature and the world experience show that fiscal system is one of the ways the government can and should use to promote the development of the financial institutions. The inclusion of tax facilities in the fiscal system will positively affect the progress of these institutions.non-banking financial institutions, voluntary pension schemes, insurance, securities market

Albanian Households Behavior towards the Investment Alternatives

The article presents issues related to the investment alternatives for the households and the opportunities offers especially to Albanian families by the financial market. The main part of this study consists in developing empirical models, which can explain the behavior of Albanian individuals to invest in a particular portfolio. A survey was conducted consisting in 300 questionnaires. The research covered different cities in Albania, selected basically on their size and geographical location. The models are developed the Binar Models (models with discrete values), where the dependable variables are binary. Undependable variables are category. In the developed equations are reflected the main factors influencing the probability of undertaking by individuals investments with no risk or with risk

Customs as Facilitation of Trade. Case of Albania.

Economic cooperation and trade between countries of region is very important as a opening step for entering in big markets like EU-s. All agreements have a huge impact in customs administration for elimination of customs taxes and for facilitation of trade during customs crossing. Trade integration is seen as faster way for countries to complete all necessary condition for European Integration. This process requires fulfillment of all reforms, needed for approaches the development and integration between countries. This process is spread in time because of the feature and difference between society and their economies. Regional economic integration is considered an import component for longterm integration of South Eastern European countries in EU. Membership of Albania in WTO brings a number of free trade agreements, with the main purpose trade liberalization. The essences of these agreements have been liberalization of customs tariffs for increasing foreign trade and attract foreign investors. The loss of customs income will be compensating from imports increasing and economic development in general. The role of Customs has changed from one of a complete focus on revenue collection to a broad role encompassing components of revenue collection, trade facilitation and border security. Simplified customs procedures and documents are very important for improving relation of business and government and also improving business performance. The aim of this paper is to point out the roles, responsibilities and challenges of customs, for concluding this we have conducted a survey for analyzing the performance of customs in Albania

Considerations on Albanian Life Insurance Market

The life insurance sector is an important sector of the economy all over the world. Life insurance provides the economy and the individuals as well, a variety of fundamental financial services. Regardless the importance it has all around the world, life insurance market in Albania is still underdeveloped comparing not only to the Western European countries, but to the region countries as well. The comparative analysis of insurance market is carried out by means of two indexes: insurance density and penetration index. The life insurance market in Albania is facing several problems which will be further explained in the paper, together with some recommendations to be taken in account by Albanian insurance companies and the Albanian government as well.non-bank financial institutions, life insurance, financial system, density rates, penetration rates.