Banks: 80 percent of deposits belong to citizens

TIRANA, May 2, 2008. According to
data released, the Albanian Deposit Insurance
Agency, a state agency that insures citizens’
bank deposits in case banks become
insolvent, said the total amount of money
deposited in Albanian banks, as of December
2007, was ALL 621 billion, or 18 percent
more than in 2006. Of this, 79 percent
of the money deposited in Albanian banks
belongs to Albanian citizens. Only ALL 130
billion, or a little more than 20 percent, belongs
to companies incorporated in Albania.
Further, it seems that Albanian citizens, as
opposed to businesses, pursue different
banking strategies. Citizens prefer to save
their money in banks while businesses
choose to invest their money to increase production.
The head of the Albanian Deposit Insurance
Agency, Mrs. Silvana Sejko, declared
that only ALL 224 billion, or 46 percent of
deposits held by citizens, are insured. Sejko
urged citizens to divide their deposits between
several banks to receive protection
from the Agency. The Agency insures 100
percent of all deposits up to ALL 350,000
and 85 percent of deposits between ALL
350,000 and ALL 700,000, or the equivalent
amount in foreign currency. In practice,
this means that a single bank client would
be reimbursed up to ALL 647,500 for each
bank account. Therefore, officials urge, it is
safer to have bank accounts in several banks,
instead of one bank.
Sixteen banks insure deposits from clients
with the Albanian Deposit Insurance
Agency. (Tirana Times Staff)