Earlier this year, a study published by the Competition Authority revealed that commercial banks operating in Albania are not transparent with their customers and charge higher fees even in comparison to regional branches in the Balkans
TIRANA, Sept. 19 – Finance Minister Ridvan Bode has called on the 16 commercial banks operating in Albania to be transparent to the public regarding their financial situation and the products they offer. Speaking at a conference on financial literacy last week, Bode said that full information would lower public insecurity.
“The companies’ financial situation or elements regarding the products they offer is not a taboo and secret,” said Bode, adding that banks should divide advertisements from the customers’ real information process.
Bode also accused commercial and political representatives of intentionally manipulating the situation in financial markets.
“The manipulations come from interests of commercial companies and real political interests with political representatives making conclusions about the financial system as a whole or banks creating unpleasant situations,” added Bode.
Bode, who has been Albania’s Finance Minister since 2005 when the ruling Democratic Party came to power has been rumored as a possible candidate for Bank of Albania governor. The seven-year mandate of current governor Ardian Fullani expires next October.
Earlier this year, a study published by the Competition Authority stated that commercial banks operating in Albania are not transparent with their customers and charge higher fees even in comparison to regional branches in the Balkans. The study covering the period between the end of 2009 and 2010 also reported that banks often charge fees in Euros rather than the national currency, lek, for some services such as current accounts or cheques; consequently putting consumers at risk of being charged unfavorable currency exchange rates, even in regular transactions. The monitoring also revealed that second-tier banks in Albania, which are overwhelmingly foreign-owned, apply different fees for the same services and do not notify their customers when commissions increase, violating the regulation on the transparency of banking products and services. However, Albania’s Association of Banks has rejected government accusations that banking fees are too high, saying a study it had commissioned showed fees were on a par or cheaper than those in the rest of the region.
Latest data published by the country’s central bank show banks’ profits during the first half of this year dropped by more than three times year-on-year as bad loans continued their rising trend in the second quarter of 2011, confirming the difficult situation businesses and individuals are facing to pay off their debts.
