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In this paper we focus primarily on an analysis of the economic consequences of the reorganization of the banking system after 1990, starting with the economic reality of Albania. The Albanian economy as an economy in developing countries should have a growth and significant improvements on all macroeconomic indicators. Nowadays indicators in relation to the year 2009, the year in which they were shown publicly the consequences of the global recession these show that the Albanian economy continues to worsen. This deterioration was influenced by the Albanian government fiscal policies implemented in recent years. In this deterioration affects also the Bank of Albania, the structure and functioning of the banking system in general. Precisely in this regard will try to answer the question: Why the Bank of Albania cannot control inflation which is also its main objective? For this it will list the main factors that determine inflation in Albania. We will explain why it should not be given credit and accept deposits in foreign currency by commercial banks. The currency should not be concentrated in the Central Bank as its monopoly? We will explain why it was not necessary privatization of second-tier banks. By answering these questions we will also examine the negative consequences of this restructuring of the Albanian economy.  DOI: 10.5901/mjss.2013.v4n6p435

The Negative Consequences of the Restructuring of the Albanian Banking System since the 90s