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 billion has been injected.
Policy & regulationGuidance & interpretationSME financingLendingMacroprudential policy and tools
The Bank of Albania reported on Governor Gent Sejko’s meeting with commercial bank executives, which focused on rapid credit growth, housing market risks and financing for micro, small and medium-sized enterprises. Private-sector credit rose 14.3% year over year in the first half of 2026 and reached about 35% of gross domestic product, its highest ratio in a decade. Sejko urged banks to maintain appropriate lending and risk management standards as credit continues to support consumption and investment.
Mortgage lending increased 16.1% over the same period, while the average interest rate on mortgages denominated in Albanian lek was 3.9%. Sejko assessed that loan-to-value and debt-service-to-income limits on residential property lending were producing the intended effect of more prudent and balanced financing. He also called for greater bank participation in the central bank’s ALL 25 billion MSME Financing Program, which has injected about ALL 2.2 billion into the banking system and has been extended through the end of 2027.
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…
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.