Challenges and Perspectives of Financial Markets in Albania

Ina Petraj
Aleksander Moisiu University Durres

Abstract

This article examines the challenges and perspectives of financial markets in Albania, focusing on their impact on economic development, financial stability, and the legal environment. In Albania, financial markets face numerous challenges, including a lack of liquidity, an underdeveloped capital market, regulatory fragmentation, and limitations in financial education. Furthermore, the dominance of the banking sector and low regional and international integration restrict opportunities for diversification and sustainable development of these markets. An important element addressed in this article is the impact of the legal framework on the functioning of financial markets. The current legislation is often considered fragmented and unsuitable for fostering a competitive and transparent environment. The article proposes substantial reforms in the legal and regulatory framework to improve access to financing, enhance investor protection, and increase the efficiency of financial markets. Additionally, it emphasizes the importance of aligning regulations with international standards to prepare Albania for integration into the European Union. Finally, concrete measures are suggested for the development of financial markets, including improving financial education, developing a stock exchange, and fostering technological innovation, thereby contributing to a more sustainable and effective financial environment. This article aims to provide a comprehensive approach to addressing existing challenges and identifying opportunities to strengthen the role of financial markets in Albania's economy.

Presentation