Kofindustria says banking system focused on luxury sectors

TIRANA, August 6 – The business community represented by the Konfindustria association says the Albanian banking system has characteristics of a parasitic system because it is oriented on the luxury sectors of the economy and not real production sectors which have a faster return on investment. “The banking system has not risked in entering difficult sectors such as agriculture where the lending rate is too low,” says Konfindustria’s administrator Gjergj Buxhuku.
“The situation is a result of the banking system not being in real competitiveness conditions because of the oligopoly situation in the banking system and governments which have led the country and international financial institutions are also to blame for this.” “We must not forget that the Albanian governments have made a huge mistake with the full privatization of banks. The state should have operated on the market with a state-owned bank as a development bank to finance several sectors which the current commercial don’t risk financing,” added Buxhuku. He also suggests the reactivation of the capital market which would provide Albanian investors with the opportunity of investing their money in bank deposits or in the capital market.