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

Freedom House keeps “partly free” status for Macedonia despite new government’s efforts

Macedonia was rated only “partly free” in the latest report from international watchdog Freedom House, the same almost all of the six Western Balkan countries, despite efforts by the ... more

Albania’s central bank to issue new high-denomination banknote

The Albania’s central bank has announced it will issue a new ALL10,000 (€74.9) banknote. The new ALL10,000 banknote will have the highest value issued so far, as the current biggest value ... more

Citizens to get "same information as MPs" as Albania launches new e-governance app

Albanian Prime Minister Edi Rama presented a new online platform for co-governance with citizens entitled “Albania We Want” on October 28. Ensuring functional and responsible ... more