Erjola BARBULLUSHI (SAKTI), Eljona MUCA

Abstract Financial institutions play a crucial role as they represent the heart which supplies the economy with blood. Nowadays all people all around the world use bank products and services. Since they are so important for a country`s economy, they must go under some restrictions and limitations relating to the capital which represent a cost for the bank. This study analyzes and examines the steps that especially Western Balkans Countries must undertake in order to implement Basel II requirements relating to capital adequacy. The main findings of the study consist on these points: Albania and some other SEE countries will implement Basel II Accord since they are moving toward more developed financial markets and EU integration. Albania and some other SEE countries are trying to calculate the credit risk ratio, in the best way they can. Market risk is a new notion to SEE countries including Albania too.
Keywords Basel Accord I, II, III, Capital Adequacy, Albanian Banking System, SEE countries
JEL classification F33, G21
PDF fomrat below