The increase of outstanding loans has pulled back second tier banks from giving loans to the businesses or individuals. This has been noticed in recent years after the economic crisis of 2008 which increased the unpaid loans by businesses/individuals.
Elvin Meka, economy expert in Albania says the role of second-tier banks is lending and the liberalization of this process. “If banks don’t give loans, their role ends. They must support enterprises by lending and that is what we are struggling for,” declared Meka.
Being a small country with a modest economy, Albania doesn’t have yet a stock market and the only alternative businesses have to finance their enterprises, are the second tier banks. “Albanian businesses have limited financial or lending sources so the only way to ensure external capital is a bank. Businesses may continue their activity only with the help of banks,” stated Meka.