Private banks’ profits increased by 30% in the first quarter

Bank of Albania has released a report which shows banking system’s incomes for the first quarter of 2015 are estimated to be ALL 5.86 million, increasing by 30% compared to the same period of a year ago.

Bank of Albania experts say that the monetary easing policies applied by the Bank which for the past three years have attempted to decrease the costs of ALL currency, are being implemented to boost lending and investments in the economy. These policies have given effects in decreasing the interests of deposits. This is one of the main reasons that banks’ profits increased significantly during the first quarter of the year. Since September of 2011, the interest rate has decreased 13 times and currently is 2%.

According to the Bank’s report, during the first quarter of this year the difference between interests of loans and deposits has increased from 5.46% in September 2011 to 7.3% in March 2015. Experts say the positive balance of banks contributes in maintaining the banking system liquid and well capitalized.

News source/photo credits: ATA