Trade and construction top latest BoA report on lending to businesses

The loan portfolio for businesses in the second quarter of 2017 has recorded an average annual growth rate of around 2%.

According to a report published by the Bank of Albania, the growth of lending to businesses relies by loans granted for investment purposes, which has also compensated the negative contribution of lending to liquidity.

So, referring to the data of this report, the banks’ loan portfolio for business is dominated by lending to the trade sector, hotels, restaurants, with 43.5% of the total.

The second most credited sector is that of the industry, which attracts 26.4% of private business financing.

The construction and agriculture sectors account for 13.6% and 1.5% respectively.

Loan structure for businesses during the second quarter remained largely unchanged from that of the previous quarter.

Meanwhile, the short-term dynamics of the loan portfolio by economic sectors shows that banks have increased their lending to businesses and other services by about ALL 1.8 billion for each sector.

While lending to industry and agriculture shrank, lending to trade has shown a slight increase.

During the second quarter, the annual growth rate of the construction sector rose to 4.8% and the sector of other services to 1.5%, while lending to the industry shrank by 1%.

According to an analysis of central bank specialists, the dynamics of lending by sectors is generally in line with sectoral data on economic activity.

SCAN

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