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Banks ease lending to small businesses but turn down individuals more often
The Bank of Albania's survey for July–September shows growing demand for consumer loans and weaker interest in mortgages.
By ANN Newsroom · Newsroom
October 20, 2026, 14:15 · Updated 12:21 · 1 min read
In brief
- In the third quarter, banks eased credit standards for small and medium-sized enterprises and lowered collateral requirements.
- For individuals, the approval rate fell, mainly because of their history in the Credit Registry.
- Demand for consumer loans rose, while financing for home purchases contributed negatively.
Banks in Albania are taking two different approaches to their customers. According to the Bank of Albania's bank lending survey for July–September 2026, conditions were eased for small and medium-sized businesses, while individuals faced rejections more often.
For small and medium-sized enterprises, banks lowered collateral requirements, a change that makes access easier for firms with few assets. Standards for large businesses remained unchanged. The reasons cited include competition among banks, lower balance-sheet costs and the program for financing small and medium-sized enterprises. The approval rate for business loans rose slightly, while demand increased across all firm sizes, both for investment and for liquidity.
Individuals: more consumption, fewer mortgages
For individuals, the picture is different. The approval rate fell, and the main factor was borrowers' history in the Credit Registry, such as late installments or previous problems with loans. Credit standards remained unchanged, but margins and loan sizes were tightened, while the maximum maturity was extended.
Individuals' demand for loans rose, driven mainly by the need to finance consumption. By contrast, interest in loans for home purchases contributed negatively, influenced also by banks' perceptions of the housing market and its outlook.
For the fourth quarter, banks expect high demand for both consumer and housing loans, with no changes in credit standards for individuals. For businesses, they expect the easing for SMEs to continue but remain cautious about macroeconomic risks and borrowers' ability to pay.
