Low interests, BoA: They have saved almost 15 billion ALL for Albanians for 2019
The Bank of Albania estimates that the monetary stimulus of recent years has led to a significant reduction in the cost of debt service for the Albanian public. According to the annual report of Governor Sejko in the Committee on Economy and Finance, this effect for 2019 was almost 15 billion ALL. According to the Governor, these funds help to improve the financial situation of businesses and families and constitute an additional source of funding for consumption and investment.
The effect of monetary policy is evident in the performance of the Albanian banking system’s interest income. According to official statistics, last year the banks’ interest income fell to less than ALL 50 billion, a further decrease of 5% compared to the previous year. Since 2012, interest income has fallen by about 33%.
Meanwhile, net income from interest or the difference between the interest rates that banks collect from loans and those who pay for deposits has decreased significantly. Last year, net income from interest decreased to less than ALL 42 billion, 5% less compared to 2018. From 2015 onwards, net interest income has been steadily declining.
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