Banks in Albania expect loans demand to increase in Q1

The second-tier banks operating in Albania expect both large enterprises and small and medium-sized enterprises to ask for more loans in the first quarter of 2017, local media reported Wednesday, citing a latest survey by the Bank of Albania.

In fact, the banks experts reported a growth in credit demand in the last quarter of 2016, especially in the demand from households, mainly for consumer credit, and at a lower degree for house purchase.

Experts estimate the upward trend of households credit demand will continue into this quarter, media reported.

The credit demand from large enterprises remained unchanged, the central bank said.

But according to experts, the increased demand of enterprises in the fourth quarter 2016 was recorded for working capital.

Further on, banks here reported that enterprises credit demand was driven by the need to finance both investments and working capital.

The improved credit standards, the macro-economic situation, the decisions of the Bank of Albania and the lack of alternative financing sources contributed positively to the increased credit demand from enterprises, media cited the bank's report. Endit