Banking system reports rise in long-term lending to business and individuals

The banking system in Albania is increasing its long-term lending.

The 2017 data show a significant change in the lending rate of the economy.

Short-term and mid-term loans with maturity less than five years have decreased, while banks are lending more in longer maturities.

According to the statistics of the Albanian Association of Banks, long-term loans with maturity over five years reached the level of ALL 293 billion in November 2017, from 269 billion at the beginning of the year.

The growth of long-term lending is in itself a positive signal because it proves that banks are willing to take more risk in long-term.

Specifically, the increase in the average maturity of the portfolio is also related to the sectoral developments of loans and with the purpose of using the loan.

The rise in long-term loans shows that banks have supported more new investment projects.

The portfolio of long-term business loans has reached ALL 153 billion, up by ALL 15 billion since the beginning of the year.

Meanwhile, short-term loans in the form of bank advances or flowing capital are in decline.

A similar tendency is reported in the lending of households, where long-term loans have reached ALL 134 billion, seven billion more compared to the beginning of the year.

In the section of individuals, the extension of long-term lending is mainly related to financing for the purchase of immovable property.

Favorable interest rates offered by banks have led to a significant increase in lending in this segment.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.