The loan portfolio for the private sector grew by around 14% over one year, according to Bank of Albania data for the second quarter of 2026. The expansion of financing for the economy was mainly supported by higher demand from businesses and individuals, while banks maintained generally favourable lending conditions.

Companies are increasingly turning to banks to finance investments, secure liquidity and expand their operations. Bank loans are being used to increase capacity, purchase new equipment and develop business activity, with stronger interest from small and medium-sized enterprises.

Financing criteria for businesses have not recorded significant changes. At the same time, competition between banks has contributed to the offering of more favourable alternatives for borrowers.

The expansion of lending has also been observed among households, which are taking out more bank financing to purchase homes and cover consumer spending. Both mortgage loans and consumer loans continue to record high demand.

According to banks, this trend is linked to the easing of certain financing conditions, increased competition in the market and a greater willingness to take on risk.

Changes are also emerging in the composition of the loan portfolio. Lending in lek is advancing at a faster pace compared with financing in foreign currencies, gradually increasing its share of total bank lending.

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