THE BANKING INDUSTRY, AND THEIR ROLE IN LENDING TO ECONOMY AND THE LOCAL GOVERNMENT

Abstract

As regards in the case of Albania, at no point banking system showed signs of panic and confusion. The high level of resistance and the
quick recovery were the result of a number of important decisions. By adopting the new law "On banking system in the Republic of
Albania” and by continuing with a number of other decisions of monetary policy and banking supervision, the focus of the strategy of the
Bank of Albania has been the best governance of the risk, increased transparency of the monetary policy to the customer and the
strengthening of internal control. This strategy has been peaked with a large, special and contemporary education, open and constant
communication with the public.Current developments in the financial system show that the overall situation in the banking sector has
improved continuously. There is a return of deposits in the banking system, which speaks to strengthen public confidence.Also, and credit
to the economy has shown signs of recovery. Another positive development is that currently lending in domestic currency. All these
developments are occurring in a more optimistic climate in European markets. Statistics show that the recovery from the crisis, began,
even faster than even the most optimistic forecasts.