Challenging Financial Institutions in the Balkan on Culture Change

Peter Drucker, concluded that "We are in one of those great historical periods that occur every 200 or 300 years when people don't understand the world anymore, and the past is not sufficient to explain the future''. During the last years the global leaders are very concerned about debt governments and the future performance of second level banks. New regulators of the "Basel III" have required higher level of capital adequacy ratio. As in the other part of the world, banks in the Balkan region are facing difficulties on loan portfolio management. The loan portfolio deterioration is creating instability in the financial market in Albania, Kosovo and Macedonia by causing substantial losses to banks. Our research also highlights the creativity as being an important potential competitive advantage for banks, which should lead to new business opportunities.The research points out the challenges faced by banks during such cultural change, and how to deal with these challenges. This study should be especially useful to professionals in banking sector or anyone else who want to lead the organization through creativity culture.