TIRANA, Feb 21 /ATA/ – Bank of Albania has introduced new rules to address concerns over lending practices of microfinance and non-bank financial institutions in a bid to build a more transparent financial market and defend citizens.
Jonida Teta Kacani, Deputy Director of the Supervision Department at the Bank of Albania, said Friday that the Central Bank has approved regulatory changes aimed at further reducing the maximum effective interest rate for installment loans in small amounts and protecting citizens in the face of lending practices applied by non-bank financial institutions (microfinance).
In a televised interview, Kacani said that the measures have led to a 3-fold decrease in the interest rate on loans from microfinance institutions.
According to her, the new central bank rules are designed to limit hidden cost and fees and to further cut interest rates and consumer loans cost and increase transparency.
Official data show that non-performing loans issued by non-bank institutions fell 4.17% in the end of 2024 from 4.74% in 2023.
By enforcing stricter criteria and oversight on the non-bank institutions, the Bank of Albania aims to stabilize the microfinance sector and prevent future financial problems.
/j.p/u.sh/
