The new loan "flies" in August/ Reaches the highest value for this year

2024-09-28 09:15:00, Ekonomi CNA

The new loan "flies" in August/ Reaches the highest value for this

New credit to the economy again marked a strong increase for the month of August.

According to data from the Bank of Albania, credit during August reached 41.4 billion ALL, the highest monthly value recorded so far for 2024. New credit increased by almost 42% compared to August last year.

For the entire 8-month 2024, the new loan granted to the Albanian economy has reached the value of 252.4 billion lek, an increase of 32% compared to the same period last year.

The impetus for the increase in lending this year is coming especially from the business segment. For the month of August, the new credit for business reached the value of 33.5 billion lek, also the highest for this year and 55% more compared to August last year.

For the 8th month of 2024, the banking sector has disbursed a total of 183 billion new loans to businesses, with an annual increase of 47%. This year, banks are showing increased interest especially in lending to large enterprises, including granting corporate loans in fairly high values. The positive momentum of the economy and the healthy state of the balance sheets are bringing an increase in the risk appetite of the banking sector in the country.

Lending to individuals is also increasing, but at a slower rate. According to the Bank of Albania, for the month of August, banks granted 7.9 billion ALL in loans to individuals, with an increase of 4.5% compared to August last year.

For the entire 8-month period, the new loan for individuals touched the value of 69.2 billion lek, increasing by 16% compared to the same period a year ago. Lending to individuals continues to show positive progress, both in financing the purchase of real estate and consumption.

The new loan "flies" in August/ Reaches the highest value for this

Source: Bank of Albania

The month of August has brought an even stronger increase in the loan portfolio measured as surplus. The value of the loan portfolio for the economy reached ALL 812 billion, with an increase of ALL 14 billion compared to July. On an annual basis, credit remains at double-digit levels, with 12% more compared to the same period last year.

The growth of the portfolio is mainly based on the business segment, with an annual growth close to 13%.

Meanwhile, the loan portfolio for individuals is also growing steadily, with 8.5% more compared to a year ago.

In the last Financial Stability report, the Bank of Albania expressed concern about the rapid growth of lending to the economy, especially in the segment of loans for the purchase of real estate, both by businesses and individuals.

For this purpose, the first application of a countercyclical addition to the capital adequacy ratio (starting from mid-2025) was announced in June. However, at the moment the market is not showing much concern to these signals and lending continues to grow at a fast pace./ Monitor.al