Lending to individuals: Banks lowered interest rates in the first tremester
Lending to individuals is increasingly at the focus of the banking system in Albania.
According to a survey of lending activity for the first quarter of 2017, conducted by the Bank of Albania, banks have declared a further easing of lending standards for individuals.
Standards were eased for both consumer loans and loans for house purchase, although the latter to a lesser extent.
The main easing instrument that is being applied by banks is lower interest rates, which, especially for lending to individuals, are at historic lows.
Further easing of lending standards for individuals appears to have come mainly from increased competition in the banking sector.
As far as businesses are concerned, tightening of lending standards has continued in the first quarter this year.
Banks reported a tightening attitude especially in the segment of large enterprises.
Standards for lending to businesses have tightened for both investment and working capital, and they are expected to remain in the same direction in the next quarter.
The main factors influencing the tightening standards remain problems specific to sectors where businesses operate, non-performing loans and banks’ perception of macroeconomic situation.
Demand for loans in the first quarter of 2017 was reported on the rise for both businesses and individuals.
Increased demand of individuals was reported mainly for consumer loans, while in terms of business demand, it has shown a slight expansion mainly in small and medium enterprises.
SCAN
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.