These improvements are being driven by the need for adopting the European directives in this area, and by the Basle principles for an effective supervision. Compared to the existing law, the new draft is aimed at being more complete, more accurate in some of its elements, including new concepts in compliance with the European directive 83/349 and other important directives. Amendments are envisaged in the way of licensing activities according to capital level, in the consolidated supervision, etc. Many provisions are planned to be introduced in the law, as concerns to risk management, which so far has been covered by some regulations. The draft-law, for which international financial institutions have also given their assistance, has been subject to a large discussion with the banking industry and is currently submitted to the Parliament for passing it. In conclusion, I would say that: As a result of reforms undertaken, the Albanian banking system, as the most dynamic part of the financial system, has recorded a constant progress in the recent years. This process is the fruit of clear visions and earnestness with which the Albanian authorities have treated the banking sector reformation, fruitful collaboration these authorities have had with international financial institutions, such as the IMF, the WB, for drafting the medium-term strategies and beyond, for the development of this sector as a vital sector of the market economy and the numerous challenges it has been faced with throughout these years.
The government’ commitment to carry out a full program of structural reforms in banking sector served as an instrument for re-establishing the public confidence in financial institutions and services. The program of that period was focussed on four main objectives: •  Improving the legal and regulatory infrastructure;  •  Building sound and reliable institutions;  •  Strengthening the financial infrastructure; and  •  Liquidating or privatising the state-owned banks. Besides the adoption of new laws on the Bank of Albania, on the banking system, on bankruptcy, and on safe transactions, of importance was the program for a rapid change of the state-owned banks’ ownership, which led to the liquidation of the ANB and the establishment of the Bad Assets Resolution Trust. The NCB was recapitalised and privatised in 2000. During 2004, the privatization process of the Savings Bank was finalized, being purchased by the Raiffeisen International Bank Holding, thus recording the transfer of 94% of the banking capital to private ownership. Currently the Albanian banking system is composed of 17 banks, 14 of which are of foreign capital. The capital source is from different places, such as Greece, Italy, Austria, Germany, United States of America, etc.