The ratio between loans and deposits is currently at the level of 58.1%, a figure that shows the considerable number of liquidities that can finance the economy. This conclusion of the latest report by Bank of Albania for October shows that deposits decreased by 1 billion ALL during this month, by deducting to 958.7 bl ALL.
The report shows also that deposits keep maintaining a positive increase when speaking in annual terms, although at low level of only 1%. For several months, deposits increase headed towards stagnation, since the reduction of interest rates for deposits by Bank of Albania in low levels, has deterred individuals and businesses from keeping their money in banks.
There are no much profits from the bank, and the maintenance of deposits in the Bank of Albania is no longer a smart investment. However, experts agree that this liquidity situation is not a problem for the banking system. Bank of Albania announced the reduction of deposits interest rate to 2.25%, the lowest level of interest rate in its bank’s history.
News source/photo credits: ATA