Credit tightening, the new regulation of the Bank of Albania
2024-09-26 16:46:00
TiranaPost
The Bank of Albania has prepared a new regulation, which is expected to bring a strong tightening in the lending activity of non-bank financial institutions, otherwise known as microfinance, with the aim of avoiding abuses in the granting of loans with small values, which for the sake of indeed, they are not only provided by microfinance, but most of them are provided by the banking system.
But what does the new regulation provide?
It is not allowed to give more than two loans to the same customer or borrower at the same time; it will no longer be allowed to grant loans with an identity card; the ceiling will be placed on the loan installments in relation to the net monthly income of the clients; loan contracts cannot be concluded between the hours of 22:00 and 07:00, etc.
The changes drawn up by the Bank of Albania are expected to hit microfinance quite a bit.
