Bank of Albania said in its latest Bank Lending Survey for the first quarter of this year, loan demand was reported as high across all sizes of enterprises, mainly to finance either investments or inventories and working capital, but the loan demand for liquidity purposes was perceived as low.

The loan demand was high mainly for investment financing and from both small and medium-sized  enterprises, but it was reported a low demand from the big businesses.

The increase in the loan demand, according to the central bank lending survey, was driven by higher needs in investment financing and working capital inventories.

According to the lending survey, improved business confidence was also reported as a factor supporting the expansion of lending demand.

On the other hand, the overall level of interest rates, the economic situation and its prospects, as well as the use of internal financing sources, have been reported as factors that have discouraged the demand for business loans in the first quarter. The business loan demand is expected to be high in the second quarter of 2023.

The central bank lending survey notes that commercial banks resorted to prudent lending policies for businesses in the first quarter. Commercial banks tightened the lending standards for businesses, as well as terms and conditions.

/r.e/u.sh/