For the Bank of Albania, a lower level of individual deposits in ALL is not a concern, since it is a short-termed phenomenon.
“We don’t see a negative implication for the health of the system, the ability of banks to continue their financial intermediation and credit the economy, even for profitability and long-term situation”, says Erald Themeli, Director of the Monetary Policy at the Bank of Albania.
Deposits in ALL have dropped with 3.2%, compared to one year ago. The Bank says this is a natural development, dictated by the current economic situation and the dropped interests.
“Individual money savers have shown more interest recently on government treasury bonds, financial instruments that offer an acceptable liquidity, but above everything else, it is because they offer a higher interest rate and profitability”, Themeli says.
The bank says that a lower interest rate for loans has brought profits for the economy, starting with more loans in ALL.
“Easier options for loans in Albanian Lek have made the economy save 10 billion ALL a year. This has two positive factors. First of all, businesses in financial difficulties were able to continue operating normally and pay their bank obligations. Businesses in a better and healthier situation have saved money by using them in investments and employment”, Themeli declared.
According to INSTAT, the entire economic growth of the past two years has arrived through investments. Consumption has been slower.
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