Credit standards to households in Albania to further ease in Q4

Lending to households in Albania continued to increase in the third quarter of 2015, supported by good performance of consumer loan as banks expect a further ease of lending criteria for the fourth quarter, Albanian Daily News reported on Friday.

The loan for house purchase maintained the growth rates similar to the previous quarter, and the positive dynamic of loan to households was supported by favorable lending standards and rising demand for financing, in particular for consumption, the daily quoted the Bank of Albania as saying.

The country's lending standards eased in the third quarter and the trend is expected to continue in the fourth quarter, while demand will continue to trend up in the fourth quarter.

Loan to households increased at a higher rate than in June, by 5.2 percent in the country, boosted by growing consumer credit which has been trending up for almost one year.

The credit was mainly granted in the country's currency Lek.

In August, Lek loan to households was 9.5 percent higher than a year earlier, remaining at the average level in the first half of year. Lending in foreign currency to households improved slightly.

The positive performance of lending to households was attributable to the eased lending standards from banks, and increasing demand for financing from households.

Credit portfolio for house purchase stayed at the moderate levels, around 2.1 percent. The demand for this product remained weak due to weak demand.

The easing of lending standards to households was driven by good performance of banks' liquidity, the better competition in the banking system and the easing of monetary conditions in Albania. Endi