TIRANA, Oct 20 /ATA/ The lending standards for business have been eased in the third quarter of 2021.
Bank of Albania published the results of the survey on lending activity, according to which, “looser lending standards were reported in both segments by size of business: small and medium-sized business, as well as large business.
Standards were also loosened in both types of credit use: investment financing and liquidity needs.
According to the BoA, the easing of lending standards for businesses was driven by banks’ perception of lower
risk for the current economic situation and its outlook, as well as for the financial condition of businesses.
Also, the easing of lending standards was influenced by the perception of the improvement of economic situation in the trading partner countries. The tightening of lending standards was influenced by the lower risk tolerance of banks and the risk related to the required collateral. However, the negative balances of these indicators were below their historical average.
“For the last quarter of 2021, lending standards for businesses are expected to be further eased. Banks expect to apply looser lending standards on loans granted for investment purposes, as well as to cover liquidity needs. Also, lending standards are expected to be further eased in both segments of business size: small and medium, as well as large business “, it is stated in the BoA report.
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