Bank deposits in Albania grew by 8% compared to the same period last year. The biggest increase came from savings in the local currency. These grew four times faster than deposits in euros.

Experts say higher interest rates set by the Bank of Albania drive this trend. The rates make lek-denominated deposits more attractive.

“Interest rates for deposits in lek have been much more favorable. This encourages citizens and businesses to save in the local currency,” said finance expert Artur Ribaj.

At the same time, the rise in savings shows that many people are reducing consumption. They prefer to keep their money in banks rather than spend or invest it. “This increase in savings reflects more cautious financial behavior. However, it also slows down the circulation of money and demand for loans,” Ribaj added.

Nevertheless, bankers expect the trend to continue. This is likely if interest rates remain stable and the lek’s strength keeps boosting public confidence in saving.