Litigation of private banks with lenders to be reflected at the register of loans

Tirana, January 13, 2016

Bank of Albania has decided to include in the register of loans of private banks the litigation these banks will have against their debtors from now and on. Since 2008, the Bank of Albania administers and is responsible for the register of loans, a historic database of loans given by private banks.

The Central Bank also aims to create a rating structure known as ‘credit scoring’ which will give points to lenders through an electronic system that will be established within the beginning of the next year, according to the Bank.

The decision comes as a necessity for having a clearer view of the banking system performance and activity and in the framework of the action plan for nonperforming loans. According to this decision, the litigation between second tier banks and debtors will be reflected in the Bank of Albania’s register of loans.

During 2015, Bank of Albania and second tier banks in Albania applied a package of measures for the reduction of nonperforming loans which currently have decreased at a record level of 19.9%.

News source: ATA
Photo credits: Flickr