The Unethical Banking Costs Distrust of Bank Customers (Albania Case as a Model for SEE Countries)

This paper seeks to recognize the influence of the unethical banking to the distrust of bank customers which might escalate to a bank panic. Because of similarities and interbank connections Albanian case might be considered by researchers and supervisory bodies as an example for banks management of SEE countries. Banks in Albania are institutions of a special public importance, and they should be ethical at any time, in every service, in all sort of information revealed to the public, in any decision they make and every time to act responsibly for the best of their customers. Behavior of bank management resulted with ethical issues based on quantitative and qualitative analysis made for this article. All these findings threat the trust of bank customers and create the premises for bank panics. Banks management and regulators have to consider these conclusions for protecting the financial stability.