How do Albanians keep their money in the bank? - BoA: 1-month deposits, "in the best days". Record growth of 7% in August
Despite the fact that most citizens lock their savings in the bank for a long time, it seems that recently there has been an increase in those who put their money in 1-month deposits.
Nothing can dethrone deposits with a term of over 2 years, which continue to be the most popular among citizens, but which are not growing at the same pace as before. The latest data from the Bank of Albania show an increase of only 0.1% in the amount of deposits with this term.
The longer the investment period and the amount in the deposit, the higher the interest rate, and consequently the higher the profit after the end of the term. They also offer more stability, as they do not require frequent reinvestments. For this reason, the value of two-year term deposits turns out to be 166 billion lekë, the highest compared to other types of deposits.
Although the opposite is true for short-term deposits, meaning interest rates are lower, they are not as rigid as long-term ones, and they take longer to move and reinvest, they are seeing more growth. According to official statistics, 1-month deposits recorded a record growth of 7% in August, reaching a value of 1.9 billion lek for the first time.
This change in citizens' behavior may come about because they seek faster returns from investing money in deposits, even though short-term ones do not offer the same convenience and profit as savings stored for a longer period of time.
Deposits continue to be the main form of investment of Albanians' money, although there are currently many other ways of investing, such as in government securities, cryptocurrencies and others.
But how much weight do they have in the banking system and what is their relationship with loans?
The main source of financing for banks' lending activity remains deposits, which cover about twice the volume of loans in the sector. At the end of the first half of the year, the "loan/deposit" ratio was 51.6% or about 2 percentage points higher than the value of six months earlier.
Italy, tax revenues on the rise - Inflation, employment expansion boost profits and reduce budget deficit
Italy's tax revenues are growing faster than expected, thanks to rising employment and inflation. The trend is bringing the budget deficit back towards the......
September 30, deadline for the self-employment program - Grants of up to 1 million lek for new business ideas
The National Employment and Skills Agency announces that September 30th is the deadline for all unemployed job seekers with a clear business idea to apply......
Pensions increase from October 1 - Indexation at 2.5%, total fund 1.14 billion lek
From October 1, all pensioners in Albania will benefit from a pension increase of 2.5 percent above the amount they currently receive. The decision......
Amazon pays record $2.5 billion fine for consumer fraud
Amazon has agreed to pay $2.5 billion to settle a lawsuit filed by the US federal government, which accused the company of deceiving millions of people into......
Kosovo, imports reach over 5 billion euros in 2025 - Chamber of Commerce: The country is importing inflation along with goods
Kosovo continues to deepen its dependence on imported goods, driving the trade deficit to a high and worrying level. The country imported goods worth over......
Integrating refugees into the labor market - Greek government aims to address labor shortage
Refugees who have been granted asylum in Greece will soon be integrated into the labor market, under a new government plan that aims to alleviate a severe......
US, towards government shutdown - Leaders fail to reach agreement at White House meeting
US President Donald Trump and his Democratic opponents made no significant progress during a White House meeting aimed at averting a government shutdown that......
How did this month end for foreign currencies?
The US dollar has closed this month unstable, fluctuating continuously throughout this time as it was bought this morning at 82.2 lek and sold at 83.2......
