banks-lending-financing – Albanian  Telegraphic  Agency. https://en.ata.gov.al News Agency Mon, 14 Feb 2022 07:16:53 +0000 en-US hourly 1 Second-level banks, joint lending to finance investments https://en.ata.gov.al/2022/02/14/second-level-banks-joint-lending-to-finance-investments/ https://en.ata.gov.al/2022/02/14/second-level-banks-joint-lending-to-finance-investments/#respond Mon, 14 Feb 2022 08:05:22 +0000 http://en.ata.gov.al/?p=172582 TIRANA, Jan 14 /ATA/ Sectors such as construction, industry and infrastructure projects have significant potential for joint lending arrangement involving more than two banks.

Second-level banks in the country are applying joint lending, as an instrument to support projects with large investment value and to share risk between them.

The Bank of Albania announces that loans in very large value are a challenge for banks.

Offering a loan in the amount of 10 million euros has lower administration costs than offering 200 loans in the amount of 50 thousand euros.

But banks are not allowed to be exposed to a single customer (or group of related customers) with an amount greater than 20% of their regulatory capital.

In these cases, joint lending is an instrument to share the risk, and to finance projects that a single bank could not finance.
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