The loan request is mainly channeled into the investment segment
The credit portfolio for businesses has recorded an average annual growth of about 3.8% over the fourth quarter of 2018, where the highest growth was dominated in December.
The Bank of Albania notes that this performance is supported by the growth in demand for loans in this segment.
According to the survey of lending activity, in the fourth quarter of the year, demand for financing from businesses was reported higher than in the previous quarter. This demand was largely channeled into the investment credit segment, affecting the growth of this portfolio by about 6% yoy in the fourth quarter of the year. Liquidity loan portfolio appears more volatile.
Its performance reflects the unstable demand of businesses for this product, depending on short-term funding needs and capabilities to meet these needs with its own funds. Loan surplus for liquidity purposes has increased by about 1.3% on average in the fourth quarter of the year.
News Source: ATA