Lending to the economy on an annual basis increased by 7%

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Lending to the economy on an annual basis increased by 7%.

The Bank of Albania announces that there are no risks associated with the rapid growth of lending, which may dictate the taking of countercyclical capitalization measures.

The Governor of the BoA, Gent Sejko, decided at the end of September that the countercyclical capital increase will continue to be zero.

The countercyclical capital increase is one of the additions provided in the regulation "On macroprudential capital additions", which was approved by the Bank of Albania in June last year.

This regulation defines a category of additions to the capital adequacy ratio, which will be set periodically, by order of the Governor. The countercyclical increase is in principle intended to curb a very rapid growth of lending by the banking sector. When the Bank of Albania considers that the growth rate of credit may expose the system to risks, it may decide to increase the required level of capital adequacy. Such a supplement is classified as countercyclical. Through this intervention, banks are forced to slow down lending or alternatively increase their regulatory capital.

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