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Improving the economic activity of businesses has made it easier for banks to lend to entrepreneurship.
According to the Bank of Albania survey, the banking system during the last quarter of 2021 perceived lower risk related to the economic situation in the country and the financial situation of businesses, easing lending standards for both small and medium-sized businesses, as well as businesses. great.
Lending conditions were eased mainly for data loans to meet liquidity needs. However, banks are expected to further ease lending conditions in the first quarter of this year, including investment loans that remained unchanged a quarter earlier.
Meanwhile, the demand for loans continued to remain high this period, driven mainly by the segment of large enterprises and loans for investment financing, which for three consecutive quarters have seen significant growth.
In addition, the increase in demand for loans, on the other hand, was influenced by banks due to the high needs for financing inventories and working capital, as well as for refinancing the existing debts of companies.
On the other hand, lending policies to households tightened mainly on consumer loans, as they eased housing purchases during the fourth quarter of last year.
Even in the segment of households, the demand for loans has been high driven by high needs for financing home purchases but also for consumption, while the expectations of the banking system are to continue the upward trend in the first half of the year. 2022.
Beyond the optimism of the banking system, the situation of recent months with the wave of rising prices may lead to a slowdown in demand for credit due to rising costs for both citizens and businesses.
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