Credins Bank’s microcredit portfolio expands by 23% for the first nine months of 2018

The banking system is continuing to expand its activity into the segment of small customers.

In an interview for Scan, Gjovalin Lala, the director of Agro and Micro loans at Credins Bank, states this segment is marking high growth rates this year as well.

At the end of September, the Credins Bank’s microcredit portfolio was found to grow by approximately 23%, among which the agricultural and agro processing portfolio expanded by about 14%.

Meanwhile, the ratio of non-performing loans is declining and is considerably lower in relation to the average of the system.

At Credins Bank, as far as microcredit portfolio is concerned, the ratio of problem loans is 8.4%, while for the agricultural portfolio this ratio is 4.9%.

Lala states that the electoral year, this time, has had no negative impact on the lending performance for this market segment.

Agriculture and agro processing remain a priority for Credins Bank.

For the first nine months of the year, the new loan of this sector has been reduced 50% compared to the same period of the previous year.

Farmers have shown a particular interest in expanding vineyards, while a high interest is also the increase in collection of points for productive agriculture.

Lala says that the formalization process is helping to improve the banking system’s access to the microcredit segment.

According to him, the most credited sectors by Credins Bank in this segment are Services and Commerce.

lately, banks have also focused on diversifying loan portfolio, which is more favorable to lending to households and small and medium-sized businesses.

SCAN

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