Turkey's biggest bank set to establish a branch in Albania, continuing its expansion in the Balkan region.
Ziraat Bank, Türkiye's largest lender, is set to open a new branch in Albania, marking a significant expansion of its operations in the Balkans region. The new branch, located in the capital city of Tirana, will be the bank's sixth presence in the region, joining Bosnia-Herzegovina, Bulgaria, Kosovo, Montenegro, and Greece.
The strategic reason behind Ziraat Bank's decision to open a branch in Albania is to expand its presence in the Balkans and support Türkiye’s foreign trade and investment relations with the Western Balkans. Albania, currently in the process of joining the European Union, offers promising growth and cooperation opportunities.
According to Alpaslan Çakar, CEO of Ziraat Bank, more than 20% of Türkiye's foreign trade volume is conducted through Ziraat Bank, highlighting the bank's role in facilitating Türkiye’s international commerce. The bank's entry into Albania is expected to strengthen trade and investment ties between Türkiye and the Balkans, enhancing mutual economic integration and financial cooperation.
The Bank of Albania’s licensing of Ziraat marks a significant development in Albania’s banking sector, being the first new commercial bank license in nearly 20 years. This points to growing confidence and opportunity in the Albanian banking market. The expansion is also seen as a significant move in Ziraat Bank's intent to expand its international operations.
The new branch in Albania is part of a broader strategic move to deepen Türkiye’s economic footprint in the Balkans, promote regional trade, and participate in the economic development of a country nearing EU integration. Ziraat Bank has not disclosed any specific strategies or initiatives it plans to implement in Albania, but it is preparing to begin operations shortly.
Upon the commencement of operations, Ziraat Bank will offer services in Albania. This expansion will increase the number of countries in which Ziraat Bank operates to 21. Alpaslan Çakar mentioned that Ziraat Bank's total asset size has approached $200 billion, including domestic and international subsidiaries.
In conclusion, Ziraat Bank's Albania branch is poised to play a crucial role in supporting trade and investment between Türkiye and the Western Balkans, further cementing the bank's position as a key institutional investor in the region. The expansion is expected to contribute to Albania's ongoing economic growth amid its EU accession process, while also strengthening Ziraat Bank's international network.
Europe will be home to a larger network of Ziraat Bank branches following the opening of its seventh branch in the Balkans region, specifically in Albania. The expansion into the Albanian market is expected to boost both the European industry and finance sectors, as well as regional business and banking-and-insurance relations, given Türkiye's significant foreign trade and investment ties with the Western Balkans.
