Demand for loans from businesses and individuals increased in the third quarter of 2026. Banks expect this trend to continue in the final quarter, according to the Bank of Albania’s lending survey.

Businesses increased borrowing across all size categories for investment and liquidity needs. Higher investment needs, inventory financing and working capital supported demand, alongside business confidence and overall interest rates. Meanwhile, banks eased lending terms, mainly by reducing collateral requirements for small and medium-sized enterprises. Approval rates for business loans also rose slightly, largely reflecting companies’ financial statements. For the fourth quarter, banks expect easier lending standards for small and medium-sized businesses, while standards for large companies should remain broadly unchanged. Business loan demand is expected to keep rising.

For individuals, lending standards remained unchanged for housing and consumer loans. However, approval rates fell, mainly because of borrowers’ credit histories. Demand for consumer loans increased, driven by consumption needs, while demand for housing loans declined amid banks’ assessments of current and expected property market conditions. Banks expect strong demand from individuals in the final quarter, both for consumption and housing, while lending standards are likely to remain unchanged.

/a.p./