2008年-世界发展银行全球_Microfinance_Institutions_and_Credit_Unions_in_Albania___Regulatory_Supervisory_and_Market_Development_Issues_43页_496kb

Summary of Microfinance Institutions and Credit Unions in Albania

Core Content

This report provides an analysis of the regulatory, supervisory, and market development issues related to microfinance institutions (MFIs) and credit unions (CUs) in Albania. It outlines the current legal and financial landscape, challenges, and recommendations for improving the sustainability and growth of the microfinance sector.

Main Points

1. Objective of the Report

• The report was prepared by the World Bank team to assess the legal, regulatory, and supervisory framework for microfinance in Albania, with a focus on CUs and MFIs.
• It aims to identify future development priorities for the sector, including enhancing operational efficiency, expanding services, and ensuring a fair regulatory environment.

2. Social and Economic Context

• Albania transitioned from a communist regime in the early 1990s, leading to rapid privatization of agricultural cooperatives and state farm land, resulting in over 400,000 new family farms.
• The financial sector faced significant challenges, including weak market mechanisms and financial intermediaries.
• Despite these challenges, MFIs have performed well, maintaining high repayment rates even during the 1997 pyramid savings crisis.
• The microfinance industry has grown, but it remains donor-dependent and has not achieved full sustainability or scale.

3. Microfinance Institutions in Albania

• The microfinance sector in Albania is composed of 10 main institutions: two non-bank finance institutions (NBFIs), three NGOs, two CUs (comprising 127 SCAs), and three commercial banks.
• SCAs and their CUs are primarily responsible for microcredit and savings services in rural and remote areas.
• The two main CUs are USCA Jehona and ASCU, with ASCU relying heavily on donor loans and Jehona on member deposits.
• Interest rates for SCAs are relatively low, which limits profitability and savings mobilization.

4. Legal, Regulatory, and Supervisory Framework

• Prudential Regulation:
  • SCAs and CUs are prudentially regulated by the Bank of Albania (BoA), with SCAs' deposits not covered by insurance.
  • BoA delegates supervision to CUs, which are responsible for annual on-site supervision of the CUs and 10% of SCAs.
  • Prudential regulations are necessary only for larger institutions that pose systemic risks.
• Non-Prudential Regulation:
  • Includes internal controls, simplified documentation, consumer protection, and participation in the credit register.
  • Recommendations include strengthening movable property registries and enabling SCAs and MFIs to use direct executive titles for loan contracts.
• Taxation:
  • CUs and SCAs are exempt from profit taxes, while NBFIs and commercial banks are not.
  • There is a need for a more equitable tax treatment, including allowing commercial banks to deduct microcredit interest revenue from taxable income and creating tax-exempt MFI subsidiaries.
  • MFIs should be allowed to pay dividends to shareholders, with taxes applied on those dividends.

5. Future Development Priorities

• Short-Term Recommendations:
  • Revise regulations to stimulate capital growth and increase deposits.
  • Encourage SCAs and CUs to increase interest rates to ensure financial sustainability.
  • Allow selected SCAs to extend loan tenors to 7 years and offer additional services like leasing.
  • Ensure CUs meet minimum performance standards and are regularly tested for supervision reliability.
  • Define microcredit and MFI within Law No. 9662, classifying MFIs as a specialized type of NBFI.
  • Implement light prudential regulations for non-deposit-taking MFIs, with minimum capital requirements of $100,000 to $250,000.
• Medium-Term Recommendations:
  • Expand access to financial services by increasing the range of services (e.g., insurance, cash transfers).
  • Encourage strategic partnerships between banks and MFIs to promote technology sharing and wholesale financing.
  • Integrate MFIs and SCAs into the country’s payment system.
  • Coordinate with donors to provide technical assistance and modern lending technologies.
  • Establish a Microfinance Resource Center to support sector development.

Key Information

• Microfinance Coverage: MFIs currently serve about 6.6% of Albanian households.
• Sector Challenges:
  • Donor dependency and limited scalability.
  • Low interest rates affecting profitability and savings mobilization.
  • Lack of a clear regulatory definition of microfinance, microcredit, and MFI.
  • Unequal tax treatment between CUs/SCAs and commercial banks.
• Sector Composition:
  • 127 SCAs under two CUs.
  • Three commercial banks with microfinance portfolios.
  • Two NBFIs and three NGOs.
• Financial Performance:
  • High repayment rates despite economic crises.
  • Most institutions remain financially weak and dependent on external funding.
• Donor Support:
  • Several MFIs and one CU requested EUR 50 million for expansion over 2008–2012.
  • Donor funding is often cheaper than commercial loans, leading to limited outreach.

Conclusion

The report highlights the need for a more supportive and equitable regulatory environment for microfinance in Albania. It recommends enhancing the legal and supervisory framework, improving financial sustainability through better capital and interest rate structures, and promoting integration with the broader financial sector. The ultimate goal is to develop a market-oriented, sustainable microfinance sector that contributes to poverty reduction and economic growth.