Changes in the banking sector in Albania during 2018-2019, and their effects on the stock capital structure

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Open Data Albania has conducted an investigation into banking sector changes in recent years, and their effects on the stock capital structure of this sector. During 2018 and the start of 2019, the Albanian banking sector, the second-level banks underwent significant changes in their structure. At the end of 2018, the number of banks reduced to fourteen from sixteen banks operating at the end of 2017. This came as a result of the revocation of licenses of two banks, following the completion of the process of merging through acquisition from two existing banks. Further, until June 2019, the number of banks reduced to twelve after the finalization of another merger, and revocation of a license based on the respective bank's own request. 
Title: Number of Second-Level Banks in Years

The reduction of the number of the second-level banks from sixteeen to twelve during 2018-2019 came through the following changes in the banking market:  NBG Albania Bank was acquired by the American Bank of Investment ABIVeneto Bank was acquired by Intesa Sanpaolo Bank; similarly, the International Commercial Bank (ICB) was acquired by Union Bank; OTP Bank Hungary acquired fully the  Societe GeneraleTirana Bank was acquired by  Balfin Group and Komercijalna Banka Skopje; Credit Bank  of Albania was revoked its license because of the initiation of a process of volunteer liquidation by the bank itself.
These changes have also led to changes in the structure of the shareholders controlling the second-level banking market. If we consider the country where the bank shareholders are registered as their country of origin, eight shareholders are foreigners and four are local. Even in the case of shareholders of companies registered in Albania, the controlling packages are again mostly foreign. One such case is ABI with its owner Tranzit shpk having a controlling package of shares outside Albania. 

The second-level banking share capital structure according to the country of Origin June 2019  

Source: Bank of Albania, Albanian Association of Banks, NRC

Another feature is that out of twelve banks, only six have their majority shareholder registered in an EU country. In recent years, we see an increasing number of investors of EU origin leaving the Albanian banking market. Their number has significantly dropped from ten in 2013 to six in June 2019. In the meantime, the countries with a controlling stock capital remain, in addition to EU countries, remain Turkey and Saudi Arabia. There is also an obvious increase of the number of banks of Albanian capital from two in 2013 in four. 

The effects of these changes will be seen in the future, but the exit of long-experienced international banks is certainly not seen as a good sign for the Albanian banking and financial market. On the other hand, the consolidation of banks, considering the size of our market, is seen as a positive development for stability and financial supervision.
Data on the structure of second-level financial companies; their ownership, management, and economic performance are published and accessible on the Open Corporates  Albania, under the Non-Bank Financial Companies. 

Excel datasets : XML, N3 datasets :
    Contributer: Open Data Albania
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