The Bank of Albania reviewed annual private-sector credit growth of 14.3% in the first half of 2026 and urged banks to preserve prudent lending and risk management standards. Governor Gent Sejko said existing housing loan limits were producing the intended effects amid 16.1% mortgage growth. He also called for wider use of the ALL 25 billion MSME Financing Program, which runs through the end of 2027.
Policy & regulationGuidance & interpretationLendingCredit riskFinancial stability and systemic risk
The Bank of Albania reported on Governor Gent Sejko’s meeting with commercial bank chief executives, which focused on rapid credit expansion, housing market risks and financing for micro, small and medium-sized enterprises. Private-sector credit grew 14.3% year over year in the first half of 2026, lifting the credit-to-GDP ratio to about 35%, its highest level in a decade. Sejko urged banks to maintain prudent lending and risk management standards as credit continues to support household consumption and business investment.
Mortgage lending increased 16.1% year over year during the period, while the average interest rate on lek mortgages was 3.9%. Sejko assessed that the Bank of Albania’s existing loan-to-value and debt-service-to-income caps were producing the intended effect by promoting more balanced housing lending. He also called for wider bank participation in the ALL 25 billion MSME Financing Program, which offers favorable funding to MSMEs and farmers and has been extended through the end of 2027.
The Bank of Albania reviewed private-sector credit growth of 14.3% in the first half of 2026 and urged banks to preserve sound lending and risk management standards. Governor Gent Sejko said housing lending limits were having the intended effect and called for wider use of the ALL 25 billion MSME Financing Program, under which about ALL 2.2…
The Bank of Albania and the EBRD discussed potential cooperation on the central bank’s financing program for micro and small businesses, with the EBRD ready to explore implementation support. They also addressed EU regulatory alignment, deposit insurance capacity and financing for women led enterprises. Governor Gent Sejko called for continued…
Bank of Albania Governor Gent Sejko highlighted longer financing terms and a higher maximum financing amount under the Double Your Enterprise program. The program offers low interest rates and a sovereign guarantee covering up to 70% of collateral, and Sejko called on banks to support its implementation.