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.
2026-09-16Bank of Albania
Bank of Albania reviews 14.3% private credit growth and urges wider use of ALL 25 billion MSME facility
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.