In a speech to Albanian bankers, BoA Governor Adrian Fullani urged banks to keep lending to qualified customers to keep the economy going.
TIRANA, Jan. 3 – Adrian Fullani’s message to Albania’s commercial banks has been consistent over the past few months, and he repeated again in the last days of 2009 — keep lending.
“Support your customers and continue lending to reliable borrowers,” Albania’s central bank governor told a gathering of the Albanian Association of Banks at the end of the year. “Is helpful to your customers, to you and all of the economy. I am convinced that you have real opportunities to do so in competitive conditions, particularly for loans in the national currency.”
Mr. Fullani says he knows it is not just the banks that are the problem. Low levels of crediting are also a result of a decline in the demand for consumption and investments as a result of the weakness in economic activity.
But Mr. Fullani said in his speech to the bankers that credit will be an important factor in economic activity. And that’s why he encouraged banks to support their clients with credit.
Looking back at 2009, Governor Fullani said the global crisis showed a series of negative effects in Albania’s banking system, and it will takes some time to for the consequences to be managed.
“The international economic and financial crisis, significantly affected the confidence of the public in our banking sector,” Mr. Fullani said.
He added that short-term blow to the banking system was now a thing of the past, but the situation is not clear still.
Albania has a total of 16 commercial banks. They are all privately and mostly foreign -owned.
Mr. Fullani also urged banks to do a more detailed study of the customers. “Credit requires more work and analysis not only in the offices but also in the field. It requires deep knowledge and pursuit of the client and the market, because it is vital to balance sheets of banks and the country’s economic activity,” Mr. Fullani said.
