TIRANA, October 20 /ATA/ The collateral coverage ratio of bank loans increased into the amount of 80% at the end of the first 6 months of the current year, or 2.6% higher than last year.
According to data provided by the Bank of Albania, 66% of collateralized loans are in the form of real estate and 53% are in the form of outstanding loans.
The collateral represents an important element in the banking sector hedging instruments from the risk of failure to pay back the loan.
Collateralized cash loans continue to be in the lowest level of non-performing loans, at 0.5%.
While collateral-free financing is mainly related to consumer credit for households and short-term credit for business liquidity needs./p.s./
