“Inspection” on the banking system

“We are talking about the state interfering with private enterprises. Banking is a sector where managers administer public assets, the money of every citizen. Despite highest efficiency in the usage of this money, it cannot justify the exaggerated usage of the profits, and its private distribution”, declared the Democratic Party MP, Selami Xhepa.

EU approved a directive two weeks ago which obliges EU banks to not give higher bonuses than one monthly salary.

“We are lucky that the EU is imposing some directives on the supervision and capital rules, in order to protect banks from the economic shock. Our central bank, the Ministry of Finance and the Parliament should gradually undertake measures to approach the policies and standards of our banking and financial system to the EU countries, after their learned from past failures”, declared the Socialist MP, Arben Malaj.

The billionaire bonuses of bankers were considered one of the main causes that brought down the international financial system. This limitation has also some economic reasons.

“In order to reduce pressures on managers that are lured by large bonuses, they deteriorate the management of banks and large corporate”, Malaaj added.

The biggest European banks gave 257 billion EUR in bonuses for their employees only last year, even in a time of recession. These data are not public in Albania.

“The banking system should be more transparent with the public about the financial balances and especially how they are spended”, Xhepa declared.

“It is a condition, so that we can see what we are missing. Transparency in the banking system should be compulsory”, Malaj declared.

Selami Xhepa thinks that these measures should expand in other sectors too, especially companies that have concessions or have privatized public assets. Although their balances are not public, there are facts in the past which show exaggerated payments, such as the case of the CEZ managers, who had monthly salaries of 66.000 EUR.

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