Demand for credit does not stop - BoA Report: Businesses seek money for investments, individuals for housing and consumption
Credit to the private sector continues to grow at high rates, indicating strong demand from both businesses and individuals. Bank of Albania data for the second quarter of 2026 show that banks are financing the economy more, while lending conditions remain generally favorable.
The private sector loan portfolio grew by about 14% compared to the previous year. The growth is present in almost all categories, but especially in financing businesses and individuals.
For businesses, demand for credit remains high. Companies are seeking more financing for investments, liquidity needs and expansion of activity. Banks also report that lending standards for businesses have remained generally unchanged, while competition between banks has resulted in more favorable conditions for borrowers.
A significant part of this growth is related to investment loans. Businesses are increasingly using bank financing to expand capacities, purchase equipment and develop their activities. In this regard, banks have reported increased demand, especially from small and medium-sized businesses.
But not only are companies taking out more loans, individuals are also getting financed at high rates. Demand remains strong for housing purchases, but also for consumption. Consumer credit has increased significantly, while mortgage loans continue to expand.
According to banks, easing financing conditions, greater competition in the market, and a higher tolerance for risk have influenced this increase in lending to individuals.
Another important development is the increasing orientation towards loans in lek. Financing in the local currency has grown faster, also increasing its weight in the total loan portfolio.
The increase in lending is seen as a positive signal for economic activity, but at the same time it also requires caution from banks and borrowers, so that the rapid expansion of credit is accompanied by a sustainable ability to repay obligations.
The worst is yet to come - El Niño is preparing us for an extreme year in 2027
The worst is yet to come: Western Europe has just experienced its hottest June-July on record, with the continent forced to contend with drought, wildfires......
Trump, tariffs also on drone imports - Aims to reduce foreign dependence and boost domestic production
President Donald Trump said he would impose tariffs on imports of drones and their components, including those from several key U.S. allies, with the Trump......
Europeans, cash payments - ECB survey of 8,205 companies in 21 eurozone countries
Cash acceptance has returned to the eurozone after a decline caused by lockdowns and business and travel restrictions imposed by governments during the Covid......
Kosovo, 60 million euros in tax evasion in 6 months - Problems, construction, wholesale trade, hospitality and some services
In the first half of 2026, the Kosovo Tax Administration carried out around 1,015 audits, where around 60 million euros in tax evasion were identified. Among......
How the sun is changing Albania's energy map - Installed energy production capacities increased by 34% in four years
Albania's energy map has been changing rapidly in recent years. In just over four years, the country has added about 883 MW of generating capacity, but the......
Is credit getting cheaper? - BoA: Falling interest rates favor businesses, while individuals face higher costs
The cost of obtaining a loan has eased slightly during the second quarter of the year. Bank of Albania data shows that interest rates have fallen in most......
Albania, towards the opening of a new financial market - In September, the first draft for the National Green Taxonomy
Albania is laying the foundations for a new green financing market, at a time when climate change is becoming not only an environmental problem, but also a......
Over 1.6 billion lek for urban regeneration of housing in 12 regions - ADF opens the competition, aiming to increase energy efficiency and improve conditions
The Albanian Development Fund has announced the opening of the competition for the project "Urban Regeneration of Housing Stock, Phase IV", which envisages......
