Moody’s: Albanian banks performing better than national sovereign debt

Among the four pillars on which Albania’s credit profile is established, the one referring to the risks, namely to the banking sector, gets the highest rating among others, notes Moody’s annual credit score on Albania.

This estimate is fixed at moderately stable, or at B2 in the base sector estimation, otherwise known as the BCA term, which is a rating on the Sovereign debt rating of the country in consideration.

Therefore, Moody`s assesses Albania’s banking sector as sufficiently capitalized in the event of any unpleasant surprises in the future as well as with a moderate system profit rate.

However, the rating giant has also presented some criticism, as it highlights the still high level of non-performing loans, as well as the high level of euroization and dollarization of the sector.

In both cases, the report highlights the fact that, despite the problem still persisting, both phenomena show noticeably significant improvements.

Among other things, Moody’s talks about the vital importance that this sector has in relation to the domestic economy, both the asset’s weight and the government’s dependence on the banking sector to meet the needs for financing domestic debt.

SCAN

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