Market concentration in the banking sector: Evidence from Albania

The market structure can be described by concentration ratios based on the oligopoly theory or the structure - conduct - performance paradigm. Measures of concentration and also competition are essential for banks conduction in the banking industry. Several researchers have proved concentration level to be major determinants of banking system efficiency. Theoretical characteristics of market concentration measures are illustrated with empirical evidence. The market structure of the Albanian Banking Sector has changed dramatically in recent years. On 1990s, our country has experienced deregulation, foreign bank penetration, and an accelerated process of consolidation and competition in the banking sector. Particularly, the working paper examines the nature and the extent of changes in market concentration of Albanian banking sector. It focused primarily on a descriptive and dynamic analysis of change in the concentration indices in banking sector from year to year. Also it examines how the inherited structure of the banking system affects the way of the distribution of market shares amongst the different banks that comprise on the banking sector. --Bank Concentration,Concentration ratios,HHI index,Market Structure

DETERMINANT FACTORS FOR FERTILITY. CASE OF ALBANIA

Fertility Rates in Albania have suffered a great change over the past 20 years. Starting from this fact the main objective of this study is to investigate the relation between fertility rate and its determinant factors. In this study as a determinant factor are obtained: lifespan of women, their location and their involvement in work force. The study aims to determine empirically which of these factors is more significant in the impact of fertility rate. Interpretation of data and performance over the years of this indicator are explained based on the theory of demographic transition. The data are in time for the period from 1990 to 2008. Results of model show that a strong negative correlation exists between fertility rate and lifespan of women.fertility rate, status of women, level of development, demographic transition.

Tourism development post global financial crisis: Case of Albania

Tourism is the elastic sector and capable of demonstrating the significant capacity past the crisis occurrence despite it is more appreciable in the short run. The global financial crisis during 2008 – 2009 passed likewise the adverse external shock to developing countries and we faced to the consequences of it. It had the significant impact on the tourism sector. Empirical results demonstrated that tourist revenues tend to be more affected than cash tourist during the time of crisis. Impact of the crisis on the tourism sector associated with the different effects in diverse countries. The crisis around the world brought to Albania the highest number of tourists, but tourism receipts per tourist were lower compared to other years. The goal of this paper is to analyze the impacts of post global economic crisis on the tourism sector according to Albania and around the diverse world regions. The paper investigated the indicators of tourism sector linking to Albania and global regions through the comparative static and dynamic analysis during 2009 – 2014. We concluded that the impact of crisis in the tourism sector and its renovation were altering to dissimilar countries. The global tourism renovated during 2012, meanwhile the Albanian tourism sector was renovating during 2014

Impact of concentration on banking stability in Albania

The article examines the empirical nature of relationship between bank concentration and banking stability using unique datasets of Albanian banking sector. Test of banking stability is attaining through linear and probit models to reflect the effect of banking concentration. Empirical results prove the trade – off between concentration and non – performing loans and the probability of bank crisis. These results support the concentration – banking stability view and the significance of structural features of banking sector to determine its stability. Albanian empirical results rely on several theoretical and empirical results which they showed that the banking crises would occur probably in a weak macroeconomic environment characterized by slow GDP growth

Tourism development post global financial crisis: Case of Albania

Tourism is the elastic sector and capable of demonstrating the significant capacity past the crisis occurrence despite it is more appreciable in the short run. The global financial crisis during 2008 – 2009 passed likewise the adverse external shock to developing countries and we faced to the consequences of it. It had the significant impact on the tourism sector. Empirical results demonstrated that tourist revenues tend to be more affected than cash tourist during the time of crisis. Impact of the crisis on the tourism sector associated with the different effects in diverse countries. The crisis around the world brought to Albania the highest number of tourists, but tourism receipts per tourist were lower compared to other years. The goal of this paper is to analyze the impacts of post global economic crisis on the tourism sector according to Albania and around the diverse world regions. The paper investigated the indicators of tourism sector linking to Albania and global regions through the comparative static and dynamic analysis during 2009 – 2014. We concluded that the impact of crisis in the tourism sector and its renovation were altering to dissimilar countries. The global tourism renovated during 2012, meanwhile the Albanian tourism sector was renovating during 2014

Market concentration in the banking sector: Evidence from Albania

The market structure can be described by concentration ratios based on the oligopoly theory or the structure – conduct – performance paradigm. Measures of concentration and also competition are essential for banks conduction in the banking industry. Several researchers have proved concentration level to be major determinants of banking system efficiency. Theoretical characteristics of market concentration measures are illustrated with empirical evidence. The market structure of the Albanian Banking Sector has changed dramatically in recent years. On 1990s, our country has experienced deregulation, foreign bank penetration, and an accelerated process of consolidation and competition in the banking sector. Particularly, the working paper examines the nature and the extent of changes in market concentration of Albanian banking sector. It focused primarily on a descriptive and dynamic analysis of change in the concentration indices in banking sector from year to year. Also it examines how the inherited structure of the banking system affects the way of the distribution of market shares amongst the different banks that comprise on the banking sector

An Assessment Of Foreign Direct Investments Effects In Albania

In a country like Albania, Foreign Direct Investments (FDIs) are the main priority for economic growth and especially where they focus. Many developing countries (including our country) view these investments as unique opportunities to develop faster and increase the competition and the level of exports. We try to find in this work a link between FDIs and economic growth in Albania. We estimate in this framework some quantitative models, with some economic indicators as independent variables and with the level of foreign direct investment in Albania as a dependent variable. In this context, FDIs are dependent on many factors which can be classified as quantitative variables, like economic growth, average wages, foreign trade, GDP per capita, taxes, etc., and qualitative variables, like Index of Economic Freedom, infrastructure, secure internet servers, etc. DOI: 10.5901/mjss.2014.v5n22p21

Does banking concentration affect non-performing loans in Albania?

Purpose: The article examines the correlation among banking concentration and non – performing loans using datasets of Albanian banking sector during 2005 - 2017. We investigated the non – performing loans affected by market structural variables, banking variables and macroeconomic variables. Approach/Methodology/Design: Test of loan concentration impact on non – performing loans through linear models provided the significant results. Findings: Albanian banking sector proved the ambiguous results and the sound correlation in long run among concentration and non – performing loans. Outcome confirmed the negative effect of return on assets and average loan interest rate on non- performing. Meanwhile the total loans, exchange rates and Gross Domestic Production affected positively the non-performing loans. Practical Implications: Albanian banking sector operated to moderate concentration despite of bank’s mergers recently. It has linked to the increasing non – performing loans ratio past the last quarter of 2008.We demonstrated the empirical impacts that they ought to take into consideration by banking sector. Originality/Value: The research provides empirical results encouraging further investigations on banking sector.peer-reviewe

Interest rate modeling for Albania

The success of monetary policy in stabilizing prices or inflation targeting depends in large measure by the immobility of market interest rates in response to changes in policy rates. Thus the rate of transmission of interest rate depends greatly on the conditions prevailing in the credit markets and deposits; and consequently, the monetary authorities should consider these conditions and the behavior of banks in determining their policies. A change in the policy rate is reflected in an almost immediate change in the same direction and with similar proportions of short-term interest rates of bank lending and deposits. The speed at which these rates are regulated, depends on the characteristics and depth of the market, the strength of competition among financial institutions, etc.. On the other hand, after changing the key, long-term interest rates could move in the same direction, so as in reverse. Changes in real interest rates affect income and expenses, through the replacement channel, wealth, income and cost of capital. Changes in interest rates may have contradictory effects, because they affect the behavior of savers, as well as that of the borrowers. This paper deals with the construction of a suitable model for interest rate, based on a time series of interest rate for a time period outreach from August 1995 to October 2014. The aim is this model to be used for forecasting interest rate in future periods. Box-Jenkins analysis is used for modeling interest rate series. ARIMA models and SARIMA will be used for the series of interest rate.&nbsp