European Commission lauds Albania’s banking sector as well-capitalized

The stability of the banking sector in Albania has improved considerably.

Albanian banks are generally well-capitalized, while liquidity is also firmly estimated at minimum levels, states the European Commission in the progress report for the country.

Deposits, it reads, remain the main source of funding, while covering almost twice the total bank lending.

Even the level of non-performing loans has fallen sharply in 2017, estimates Brussels.

Sector profit rates have also improved during 2017, while financial results point to double earnings in annual terms.

But the European Commission does not hesitate to emphasize the still high use of the European currency in borrowing.

This makes the payment of installments sensitive to the depreciation of the domestic currency, states Brussels, which lists the use of domestic currency as one of the long-term recommendations for the Albanian economy.

Among other things, the European Commission emphasizes the fact that banks have room and opportunities to boost lending by supporting economic recovery as a result.

SCAN

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