Deposits of businesses increase by 5.4%

Albanian Association of Banks expressed concerns about the increase of deposits of businesses, which means lack of investments and insecurity. According to the latest declaration by this association, businesses in Albania are depositing their earnings in banks instead of investing them in their businesses or in opening new enterprices. The deposits increased in the first period of this year, by increasing the amount of deposits in the bank system.

“The amount of deposits has increased in low but stable rates during the first semiannual of 2014, with an annual increase of 3.1% (a percentage estimated by data collected until the end of June). This increase came as a consequence of deposits by businesses which during the second trimester of 2014 increased by 5.4%”, is announced in the declaration of AAB.

This increase of deposits is not a good news for the economy, according to economic experts. This shows that private entrepreneurs aren’t finding new opportunities to invest and prefer to save their money.

The decline of consumption and private investment is one of the main problems, which is currently facing our economy, a phenomenon that according to the Bank of Albania is happening because of the uncertainties that businesses and citizens feel about the future. This is the main reason for the fall of the inflation index which in July was 1.8%, a percentage below the minimum target predicted by the Bank of Albania for this indication.

News source: Balkan Web

Photo credits: Wikimedia / ABXDataLogic