TIRANA, Feb. 4 – Lending standards are expected to slightly ease both for businesses and households in the first quarter of 2015, says the central bank in a survey with the country’s commercial banks.
The survey shows lending standards slightly tightened in the final quarter of 2014 mainly as a result of tighter standards on investment loans.
Lending standards in the final quarter of 2014 were positively influenced by liquidity and competition in the banking system and policies applied by the central bank. However, the financial situation of households and businesses, non-performing loans at around a quarter and the specific problems in the sectors where businesses operate remained a burden.
Meanwhile, demand for new loans continues remaining low.
Lending to the economy grew by 3.75 percent in the first 11 months of 2013 while deposits were up by only 1 percent.
