Comparison between Macedonian and Albanian Retail Banking Sector

Consolidation of the banking sector, as well as the presence of well recognized banking brand in Macedonian and Albanian banking system brought a tremendous change in retail banking market and redesigned the relationship between banks and clients. This trend accompanied with an aggressive strategy that initially caused the growth of the deposit base and then followed by aggressive retail banking strategy that caused the restructuring of retail cover market. This qualitative study uses second hand data obtained by national banks of both countries in order to depict the scope and penetration of retail secured and unsecured loans as well as the deposits and their distribution to Macedonian and Albanian retail banking market. Moreover the key economic characteristics and indicators and Herfindahl index and CR5 are analyzed in order to measure the key banking performance. Since the retail banking plays a crucial role in both countries, analyzing the similarities and differences of distributed secured and unsecured loans in one side, the deposit base and credit portfolio quality are the main precondition the show the performance and retail banking indicators of both countries.