Commercial banks in Albania have tightened the lending rules for businesses in the second quarter of 2013, while easing the credit standards for households, the central bank said in its latest bank lending survey.
Credit rules tightened on loans granted to small and medium sized-enterprises, while the standards for large corporations remained unchanged. By purpose of use, standards tightened on loans for working capital and investments financing purposes. This development was again on account of sector-related problems, non-performing loans and the negative assessment for general macroeconomic situation in Albania.
On the other hand, the liquidity situation, competition in the banking system and capital adequacy have contributed to the easing of lending standards applied to businesses.
As regards to households, lenders eased credit standards on mortgages and on consumer loans as well.
Financial institutions reported decline in credit demand from businesses, while at the same time demand from households picked up in Q2.
Bank experts expect improvement of the lending rules in both businesses and households segments in Q3 2013.
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