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The decision of the Bank of Albania to set a ceiling on interest rates on consumer loans is a fair measure, but insufficient, especially for non-bank institutions.
This is the opinion of the expert on economics, Arbi Agalliu, according to whom microcredit institutions are lending at very high interest rates. Due to the great abuse they commit against customers, he adds, they should be investigated by the relevant institutions.
“I would judge a fair decision even though it affects the rules of the game under a free market, but a fair decision regarding non-bank institutions. It has been noticed in recent years that these units operate in a not very professional way because their customers are a contingent without financial culture, they fall prey to fraud. In addition to fixing the interest rate, I would more appropriately judge an investigation by either the central bank or the Prosecution regarding these units.
According to the expert Agalliu, the situation from the pandemic has significantly encouraged the use of these non-bank units, as individuals who approach them more have a lack of income and poor financial culture.
“They have used this consumer need in Albania to provide financing with low amounts but with interests outside any kind of logic that belongs to the market. An Albanian citizen cannot pay such high interest rates. It does not happen in other countries. “
Currently, the draft regulation of the Bank of Albania that sets the limit for interest rates on consumer loans is in the process of consultation with banks and microcredit institutions.
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