interest-rate-expenses – Albanian  Telegraphic  Agency. https://en.ata.gov.al News Agency Tue, 13 Aug 2024 11:49:34 +0000 en-US hourly 1 Interest rate expenses of banking sector increased by 45% https://en.ata.gov.al/2024/08/13/interest-rate-expenses-of-banking-sector-increased-by-45/ https://en.ata.gov.al/2024/08/13/interest-rate-expenses-of-banking-sector-increased-by-45/#respond Tue, 13 Aug 2024 11:49:34 +0000 https://en.ata.gov.al/?p=241562 TIRANA, Aug 13 /ATA/ The banking sector’s interest rate expenses reached the amount of 9.1 billion ALL, increasing by 45% compared to the same period last year, the Bank of Albania announced.

One factor seems to be the very rapid growth of credit in the local currency, which has increased the appetite of banks for more funds in Lek. For the first six months of the year, the loan in Lek increased by 52% compared to the same period of the previous year.

A secondary factor that is driving the increase in interest rate expenses is the increasing use by commercial banks of debt instruments known as part of regulatory capital.

The use of these instruments is done in order to fulfill macroprudential capital additions, as well as the minimum requirement for regulatory capital instruments and accepted liabilities (MREL).

According to Bank of Albania statistics, the total value of these financial instruments in the middle of 2024 reached 14.2 billion ALL, 83% more compared to the same period a year ago.

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