IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Albanian banking sector and the challenges of adopting Basel II

Listed author(s):
  • Kufo Andromahi


    (University of New York, Tirana, Albania)

  • Kripa Dorina

    (University of Tirana, Albania)

Registered author(s):

    The Albanian banking sector is already facing the challenge of adopting the Basel II international standards with the aim of applying all the necessary requirements on the calculation and reporting of the regulatory capital by the end of 2014. These developments require major preparation from the banks in order to understand, assimilate and implement the new requirements. This paper aims to analyze the challenges and opportunities of the Albanian banking sector in implementing these new requirements. Initially we will define the theoretical context of the requirements of Basel I, II and III as well as the literature review of the basic challenges that Basel II created for developed and emerging countries. In continuance it will be presented a comparative analysis of the requirements of Basel II with the actual Albanian regulatory framework with a special focus on the compliance of the legislation and gaps identified. We point out the fact that Albania as an emerging country is in the process of implementing a hybrid of Basel I and II, since the regulator considers it more suitable with the actual financial situation and the banking sector structure. With reference to the above the Albanian banking sector needs to identify the methods of value maximization from the implementation of this framework and to successfully manage the restrictions it has for implementing it up to the end of 2014. Finally in the aim of identifying all the challenges and opportunities of this process, we'll analyze the major factors that will affect the banking sector with a special mention to the requirements of the regulatory capital.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Pro Global Science Association in its journal Published in Review of Applied Socio-Economic Research.

    Volume (Year): 9 (2015)
    Issue (Month): 1 (June)
    Pages: 4-14

    in new window

    Handle: RePEc:rse:wpaper:v:9:y:2015:i:1:p:4-14
    Contact details of provider: Postal:
    Bucharest, 6th district, 47 Fabricii Street, Quadra Place, bl.J, fl.1, ap.12

    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Heid, Frank, 2007. "The cyclical effects of the Basel II capital requirements," Journal of Banking & Finance, Elsevier, vol. 31(12), pages 3885-3900, December.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:rse:wpaper:v:9:y:2015:i:1:p:4-14. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuela Epure)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.