TIRANA, Oct 10 /ATA/ – The annual interest rate ceiling on consumer loans significantly fell in the end of July, according the Bank of Albania.
According to central bank data, the average interest rate on lek-denominated consumer loans dropped to 9.36% in the end of July, down from 9.66% during the same period of the previous year.
Bank of Albania notes that the eased lending standards and the decrease in average loan interest have driven the consumer loan portfolio up in 2024.
Commercial banks operating in the country disbursed around 30.5 billion lek in consumer loans, recording a 23% year-on-year increase in the first eight months of the year.
Lek-denominate consumer loans account for around 90% of the total loan portfolio.
Applying a ceiling net interest income rate on consumer loans began in 2022.
According to the central bank, the decision to impose a ceiling rate is designed to protect consumer from potential abusive interest rates, mostly applied by non-bank financial institutions.
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