Commercial banks continued to ease lending standards for households in the first quarter of 2021, reports ATSH. The Bank of Albania announces that the easing of standards was applied to both consumer loans and those for the purchase of housing. Lending standards for households eased due to increased competition in the banking system, banks' perception of lower risk related to the borrower's solvency, as well as higher risk tolerance for loans to households this quarter.
The general easing of lending terms was achieved mainly through the easing of non-pricing terms. The latter was influenced by the increase in the size of the loan, the lower collateral requirements in relation to the loan taken, as well as the extension of the maximum loan maturity. In the second quarter of 2021, banks expect to further ease lending standards to households, especially consumer loans.