Here’s the article rewritten in markdown format:

Compliance Procedures for Banks in Albania

=============================================

Overview of the Banking Sector in Albania

TIRANA, ALBANIA - The banking sector in Albania is a crucial component of the country’s economy, with 14 operational banks and a strong presence of foreign institutions. However, compliance procedures for banks in Albania are governed by strict regulations to ensure sound management and administrative practices.

According to Law 9662, “On Banks in the Republic of Albania,” the banking sector is fully private, and domestic and foreign banks must adhere to guidelines set forth by the law. The Turkish National Commercial Bank holds a significant market share of 31%, followed closely by Austria-based Raiffeisen Bank with 16%. Local bank Credins also boasts a substantial market share of 14%.

Recent Developments in the Banking Sector

One notable development in the Albanian banking sector is the acquisition of the American Bank of Investments (ABI Bank) by New York-based NCH Capital Group. ABI Bank has expressed plans to expand its operations further, and Hungary’s OTP Bank Group has completed the purchase of Societe General Albania.

Financial Performance of Banks in Albania

Despite market fluctuations, the banking sector remains well-capitalized, profitable, and liquid. In 2018, profits reached around $82 million, with a capital adequacy ratio of 17.9%. The return on assets was 1.2%, and return on equities stood at 13%. Total bank sector assets reached $12.7 billion, mostly comprised of bank deposits.

Key Financial Indicators:

Non-performing loans: 11.1% (down from 13.2% in the previous year)
Capital adequacy ratio: 17.9%
Return on assets: 1.2%
Return on equities: 13%

Regulatory Framework and Supervision

The regulatory framework aligns with international practices, and the Bank of Albania has tightened supervision rules over banks in response to the global financial crisis and regional bank contagion risks.

Role of Non-Banking Financial Institutions and Savings and Loan Associations

Non-banking financial institutions and savings and loan associations also play a significant role in Albania’s banking sector, offering loans from $1,000 to $500,000. A total of 31 non-banking financial institutions and 14 savings and loan associations operate in the country.

Conclusion and Recommendations for U.S. Companies

As the Albanian banking sector continues to evolve, compliance procedures will remain a crucial aspect of its operations. U.S. companies seeking to enter the market should be aware of these regulations and work closely with local authorities to ensure a smooth transition.

Sources:

Law 9662, “On Banks in the Republic of Albania”
Bank of Albania
U.S. Commercial Service

Note:

This article is for general information purposes only and should not be considered as professional advice. For specific guidance on compliance procedures for banks in Albania, please consult with a qualified expert or local authorities.