Bank of Albania concerned over rapid growth of lending (Table)
Banking & Finance Tuesday, February 21st, 2006Tirana, Feb. 21 (AE) – Central Bank of Albania (BoA) announced recently that rapid growth of lending during the second quarter of 2005 could result in worsening loan portfolios.
In its “Financial system stability” declaration BoA announced that the level of loans dispensed by the banks was at an average US$ 100 million for every month starting from June to December of 2005.
Because of this, BOA advised all commercial banks to strengthen their potential customer evaluation procedures meanwhile suggesting to the government legislative changes that would allow the banks to liquidate in a shorter time period and with less hindrances resulting from collaterals for unpaid loans.
In 2005 the Albanian banking system showed continued grow and expansion through the opening of new branches and agencies. In December 2005, the total number of operational branches reached 131, meanwhile that of agencies reached 117. End of 2005 also introduced the latest commercial bank with Albanian capital, Banka Union (Union Bank), reaching the total number of 17 commercial banks.
| Indicators | June ‘05 | Dec. ‘05 |
| Capital adequacy | 19.80% | 18.90% |
| Shareholders equity (million LEK) | 30,653.20 | 34,506.50 |
| Net result (million LEK) | 3,316.54 | 6,626.70 |
| New loans (million LEK) | 54,961.00 | 104,842.00 |
| Net problem loans / net loan | 0.75% | 0.83% |
| Gross problem loans / balance total | 0.50% | 0.55% |
Short URL: http://www.albanianeconomy.com/news/?p=122
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on Feb 21 2006. Filed under Banking & Finance.
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