According to data from the Bank of Albania, banks have attracted individuals to apply for consumer loans by reducing commissions, applying lower margins and increasing the size of the loan.

Also, the factors that drove the banks to relax credit terms and conditions for individuals were the increase of competition in the banking system, the higher risk tolerance or the extension of the loan maturity only in loans approved for the purpose of financing consumption.

Also, the ratio of loans extended to total loan applications was higher, driven by the banks’ perception of individuals’ solvency and their credit history.

In relation to mortgage loans extended to individuals, banks somewhat tightened the price elements, through the application of higher margins. The tightening of the standards was also based on the banks’ perception of the current and expected developments in the housing market, the environment of interest rates or the higher collateral requirements for mortgage loans.
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