Two banks "own" 1/3 of deposits in Albania - Market structure remained almost unchanged last year
Only two out of 11 commercial banks in Albania control 1/3 of deposits and over 40% of assets of the entire banking system. The latest data from the Bank of Albania show a high concentration of banking activity in the 2-3 largest banks in the country.
Assets include all loans that banks give to citizens and businesses, which they gradually repay with interest, cash on hand, banks' investments in government securities, their buildings, equipment, etc. So assets include everything that the bank owns in its entirety.
Banks with the highest asset value usually have the largest number of clients, but not necessarily. There are banks with a smaller number of retail clients, but with business clients who have loans in significant amounts.
During 2025, more than half of banking assets were in just three banks, which also hold up to 46% of total deposits.
If we compare it with 2024, this structure of the banking system has not undergone significant changes. Assets remain the same, but the weight of deposits in the two largest banks has decreased, with citizens and businesses distributing them to other banks.
What does this narrow concentration of banking activity indicate?
It is not an anomaly. In other countries, it has also been seen that 2-3 banks dominate the market, which does not constitute a problem for the system. However, such concentration shows that the decisions that these banks make have a direct impact on the economy and the lives of citizens or the activity of businesses. Also, this concentration makes it a little more difficult for small banks to compete with larger ones.
Currently, the banking system consists of 11 banks. Together with the first digital bank in Albania, Jet, which was registered at the end of last month, this number goes to 12. According to official statistics, 11 banks in the country have assets of over 15 billion lek.
Meanwhile, in August 2025, the Turkish bank Ziraat, specializing in agricultural lending, received preliminary approval for licensing from the Bank of Albania, and within 12 months of that decision, it must meet all the conditions provided for in the law "On Banks in the Republic of Albania" and the sub-legal acts implementing it, in order to be provided with the license to start banking activity in our country.
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