EC for Albanian banks: Interest rates on loans have fallen
In the latest report, the first quarter of the candidate countries, the European Union holds the same projections in the fall, and also holds the same approach to the Albanian economy as a whole.
As far as the financial sector in Albania is concerned, the European Commission says, “The consolidation of the banking sector continued throughout the first months of this year, with the number of banks that dropped from 16 to 13 in March 2019.”
The capital adequacy ratio in the banking sector remains stable at 18.2%,” it is further stated. Regarding non-performing loans, official Brussels explains that the decline continued to 11.3% in January this year.
Credit to the private non-financial sector continued to recover during the first quarter of the year, says further the European Commission.
Meanwhile, it emphasizes lending to households, rising, but at a slower pace than before. Interest rates, both for business and for households, are estimated to decrease slightly. For households, the average interest rate is estimated to have been 7.1%, and has now dropped to 6.9%. For entrepreneurship, it has been at 6.9% and is already fixed at 6.5%, Brussels says. Deposit growth, by 1.1%, is estimated to be a positive development.