Second-tier banks in Albania tighten loan criteria for large business
Xinhua, January 17, 2017 Adjust font size:
The second-tier banks operating in Albania tightened the lending standards for large businesses during the fourth quarter of 2016, a survey of the Bank of Albania showed Tuesday.
The tightening of lending standards for businesses is seen in the segment of large enterprises, while for small and medium-sized enterprises the standards remained unchanged, central bank's data confirmed.
The survey found that the banks' tightening policy towards large businesses was mainly implemented through increased collateral requirements.
The main factors contributing to the tightening of banks' credit standards to enterprises continue to be related to the specific problems of the sector, non-performing loans and banks' perception of macroeconomic situation, the bank said in a press release.
Meanwhile, the banks eased crediting criteria for households in Q4, the survey showed.
According to central bank experts, competition in the banking market, the level of banks' liquidity and capital adequacy were factors contributing to the easing of credit standards to households.
The easing of credit standards for households was done by narrowing the average loan margin, reducing commissioning and growth of required installment ratio to income.
However, banks expect tightening of lending standards to large businesses to continue into the first quarter of 2017, when standards for small and medium enterprises and individuals are expected to ease. Enditem