Banking system

Prepared by:
Class of: Banking and finance
Epoka University

Table of contents

Chapter 1 4 Financial system, meaning and its constituent’s elements 4
Chapter 2 5 Financial bank institutions. Meaning and their functions 5
Chapter 3 6 Banking System 6 Non bank financial institutions. Meaning and their functions 6
Chapter 4 9 The role of government in the credit market 9 The role of other financial credit institutions credit in financing the economy in Albania 9 The role of banks in lending activity in the country 10
Conclusions 11
Abreviations 11

Entry
Progression and technological innovations are continuously effecting in a sensible way in every field of life, but especially and faster those has been felt in the Bank System. In now days, we are not only in front of a fast liberalization, globalization, but also in expanding financial market, updated always with new bank’s products. Albania is integrating everyday its self with this progress, despite national and international challenges that it faces time by time.
Credit process has a main and important role in the economic progress, of financial system in our country. It is named like the locomotive that draws the most of economy growth. Since our agents are operating in a very flexible background, business world is more and more combined and conditioned by banks and financial institutions. Bank institutions are raising economy efficiency, through channeling of funds, by so contributing in the economic welfare of every individual, so they can use their funds in a productive way. Through years, development and expanding of credit activity has affected for good the performance of bank system, but has also brought an increase of non-performing loans.

Chapter 1
Financial system, meaning and its constituent’s elements

Financial system: it is a set of