2. Access to Credit
2.1 Banks
2.2 Other Sources
2.3 Credit Bureau

2. Access to Credit

Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property

2.1 Banks (Weak)

Core Question: Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property?

Weak, although the banking system remains relatively well capitalized, nonperforming loans have risen to over 20 percent of all loans.

Access (Very Weak)

2.1.1   How easy is it to obtain a bank loan?

Rank 127 out of 140; Score 1.9 out of 7, Trend ↑

Soundness (Weak)

2.1.2   How sound are the country’s banks?

Rank 80 out of 140; Score 4.6 out of 7, Trend ↑

The Global Competitiveness Report 2015-2016, World Economic Forum
World Bank Snapshot Report:

2.1.3  Microlending (Weak)

Few institutions and most are poorly rated for transparency and reporting. Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country?

5 What is the number of active borrowers per institution?

ASC Credit Union                                                    13,891
Besafund                                                                    28,478
First Albanian Development Company            3,836
ProCredit Bank
VisionFund Albania                                                 1,863

Microfinance Information Exchange

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2.2 Other Sources (Very Weak)

Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange?

Banks account for over 90 percent of total financial-sector assets.

Financial Freedom (Strong for entrepreneurs)

2.2.1   How much control does the government exert over financial services?

Score 70 out of 100 – limited government control.

Index of Economic Freedom 2015, Heritage Foundation

Venture Capital (Very Weak)

2.2.2   How easy is it for entrepreneurs to find venture capital?

Rank 133 out of 140; Score 1.9 out of 7, Trend ↓

Equity Investors (Very Weak)

2.2.3   How easy is it to raise money by issuing shares on the stock market?

Rank 140 out of 140; Score 1.5 out of 7

Source: The Global Competitiveness Report 2015-2016, World Economic Forum

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2.3 Credit Bureau (Strong)

Core Question: Is comprehensive credit information available through public and private credit bureaus?

The Central Bank’s Credit Registry is functioning well.

Overall Ranking 42 out of 189; Trend ­↓

Coverage (Strong)

2.3.1   What is the depth of information available in credit bureaus?

Score of 6 out of 8

Public (Very Strong)

2.3.2   What is the extent of public credit registry coverage?


Private (Very Weak)

2.3.3   What is the extent of private credit registry coverage?

No private registry

Source: Doing Business 2015 – Getting Credit, World Bank

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