The money that leaves the Albanian banking system has peaked by the end of 2017, marking a record-breaking amount of 265 billion ALL, according to the Central Bank, or 2 billion EUR.
This is one-fifth of the total money that circulates in our economy.
In February 2018, the money leaving the banking system was 257 billion ALL, almost 500 million EUR more than February 2014.
Economic experts say this could be related to the fiscal burden which forces businesses to operate in an informal economy.
“This means that the level of informality in the Albanian economy is high, and this happens at the same time with the difficult economic situation. These phenomena are connected. Businesses and citizens prefer to make their commercial transactions outside the banking system”, said Gjergj Buxhuku from the Albanian Confindustria.
On the other hand, the reduction of the interest rate for deposits has influenced to increase the money that is left outside the banking system.
But Gjergj Buxhuku thinks that the judicial vetting process has made officials move a lot of money outside banks.
The Bank of Albania has measured the money movement that is registered only with the Albanian currency, Lek. There is no official statistic for other currencies.
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