Banks are giving more loans to SMEs, fewer to large businesses

Tirana, Albania
9 June 2016

A latest report by the Bank of Albania shows that lending to the businesses has increased slightly in the past years, while the lending process has become more difficult. According to the report, the increase of lending has been associated with the concentration of the offers for loans, in some banks and a low number of businesses. However, the lending process simplified during 2015, regarding the lending procedures for SMEs.

The report says that the lending portfolio for businesses is dominated by loans to large businesses (64% of the total during 2015). Compared to the previous years, lending to large businesses has increased, given the fact that the loans to large businesses comprised only 47% of total loans given to businesses in 2008.

Speaking of individual loans, private banks have continually simplified the lending process, especially during the past year.

In general, banks have simplified the lending process due to the increase of competition in the banking system and the monetary policies applied by the Bank of Albania in the past years.

News source/photo credits: ATA