CEU Electronic Theses and Dissertations, 2012
| Author | Cibuku, Dorina No |
|---|---|
| Title | Microfinance in Albania: The Role of Financial Institutions in Expanding Acecess to Credit |
| Summary | The major challenge facing the Albanian economy is in achieving a process of self-sustained economic development, and the problem is how to facilitate access to credit for small and medium enterprises that operate in urban and rural areas, especially in rural areas. The goal of this paper is to analyze and recommend how to improve and facilitate access to credit. In doing so it will answer why credit is one of the most important factors for small and medium businesses to grow, increase employment and attract investors, therefore the whole economy can grow and be sustainable in the long run. Further, the paper sheds light on the most important problems and recommends how they can be solved. In order to examine all relevant factors that prevent access to credit, the first chapter will highlight the role of commercial banks in the Albanian financial market, their policy and products regarding credit and loans. In addition to this, Collateral Law and Registry of Securing Charges will be analyzed in order to estimate administrative barriers. Furthermore, it will introduce field warehouses as a link between financial institutions and agriculture, and analyze why this is an appropriate solution for Albania. The second chapter will analyze the role of Savings and Credit Unions as an innovation in the Albanian financial market to fill the gap of almost 50% of the population that lives in rural areas. Albanian Savings and Credit Unions will be analyzed in order to evaluate the role and importance of these institutions in Albanian economy. It will analyze why commercial banks do not operate in rural areas and why the cooperation between commercial banks and savings and credit union foster optimism to introduce field warehouse in Albania. |
| Supervisor | Baniak Andrzej, Tajti Tibor |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2012/cibuku_dorina.pdf |
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