Albanian banks continue to tighten credit rules for businesses in Q2 2013

By bne IntelliNews July 16, 2013

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.

Related Articles

Albania wants to attract more US defence sector investments

Albanian Defense Minister Olta Xhacka said that Tirana wants more investments by the US military industry in Albania, after a US company launched work on the installation of the Integrated ... more

Bulgaria’s Borissov appeals to Western Balkan leaders to preserve peace

Boyko Borissov, prime minister of the current EU Council chair Bulgaria, called on April 10 on the leaders of the Western Balkan countries to preserve peace and ... more

Albania's second airport to open in autumn 2018

The idled airport in the northern Albanian city of Kukes is expected to start operations by this autumn, Prime Minister Edi Rama said on April 6.  Albania’s air transport sector is on the ... more