2018 confirmed the viability of the Albanian banking sector

2018 confirmed the viability of the Albanian banking sector

The closing year confirms the stability of the Albanian banking sector, reports Bank of Albania.

According to the BoA, 2018 may be considered special due to the fact that the system experienced significant structural changes, which are expected to be finalized in the year that we are entering.


Although the activity of the sector continued to expand, remaining well-capitalized, liquid and profitable.

The ratio of bad loans continued to improve, catching the lowest value of the last 8 years, 12.89% in September, while the deposits experienced growth, which was channeled into investment in securities, and less on lending, makes given that the BoA, in which exchange rate appreciation and loan cancellations have also statistically affected the credit performance indicators, while the level of lending in local currency continued to dominate over foreign currency.

However, beyond that, I estimate that the overall level of lending to the economy is still far from potential and the opportunities to extend lending are numerous.

The Central Bank points out that, for a fast-paced economy to move closer to European Union levels, the situation needs to change and lending rates should be higher, showing constant his health.

According to her, the financial resources available and the considerable space for financing the economy indicate that financial efficiency in banking activity can be significantly improved. 

News Source: ATA

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