Savings –Lending Companies are financial institutions which accept deposits only from their members, and lend these funds to make a profit. They are subject to licensing and supervision requirements and are part of the union of savings-lending which are required to report to the Bank of Albania their financial situation and supervision compliance on an individual basis as well as on a condensed basis for the entire network of the savings-lending companies.

Open Data Albania has conducted a research on these institutions and has compared their weight compared to the banking system, based on the data from the Bank of Albania.

In Albania there are actually two unions of savings-lending:

•    Union of the Companies of Savings-Lending “Jehona” Tiranë;
•    Union of the Companies of Savings-Lending “Albanian Union of Savings-Lending ” Tiranë.

Graphically during the recent years, the value of assets in million leke has varied as shown below:
 


Source: Bank of Albania
Analysis and Comments: Open Data Albania

At the end of 2010, the value of assets of the companies of lending-savings is estimated at around 5.24 billion leke, or 6.8% more than during 2009. During 2010, the companies of lending-savings and their unions have continued to expand their activity with a quick pace. The lending activity continues to hold the major weight in their financial activity. During 2010 the quality of the lending portfolio, just like in the banking sector has fallen.

The weight of their assets versus the GDP has changed as shown below:


*Based on the data for the first six months of 2010
Source: Bank of Albania
Analysis and Comments: Open Data Albania

Despite the weight of the companies of lending-savings versus the GDP has seen increases compared to the assets of the banking sector which makes up 80% of the GDP, the companies of lending-savings still hold a relatively low weight in the Albanian financial sector (about 1% of the financial system).

The companies of lending-savings are very important for the development of the microlending, and for providing coverage of the sectors that banks do not prefer. Their presence in the market increases competition and improves lending of the economy.