Money that doesn't enter the banks - 481 billion lek in circulation outside the system. What is keeping cash "alive"?
Money circulating outside banks continues to grow, reflecting the still high use of cash in the economy. According to data published by the Bank of Albania, in January 2026, money outside depository corporations reached around 481 billion lekë.
Compared to December 2025, when this indicator was around 483 billion lek, a slight monthly decrease of around 2 billion lek is observed. Such a development is relatively common at the beginning of the year, as part of the money circulating during the holiday period returns to the banking system.
However, compared to January 2025, when money outside banks was around 422 billion lek, the current level is around 59 billion lek higher, or a significant increase in annual terms.
The increase in money in circulation outside banks is usually associated with the expansion of economic activity and increased consumption, but it also reflects the continued preference of individuals and businesses to use physical money, despite the gradual expansion of electronic payments and digital banking services in the country.
The culture of cash payments, unattractive interest rates on deposits, the lack of POS terminals at many points of sale due to high bank commissions, as well as the high level of informality, are some of the main factors that encourage keeping money outside banks. This picture also includes money from illegal sources, which usually circulates outside formal channels.
Low trust in the banking system, poor level of financial education, preference for immediate liquidity, and resistance to electronic payments are also influencing factors.
To curb this trend, the government and the Bank of Albania have taken measures to encourage the use of electronic payments, including reducing bank fees, promoting financial education, setting limits on cash payments between individuals and businesses, and measures to reduce informality. Authorities expect these policies to gradually reduce reliance on physical cash in the coming years, although data shows that the road to a less cash economy remains long.
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