TIRANA, Oct 20  /ATA/ Loan demand from both commercial enterprises and households saw a marked rise during the third quarter of 2026, with commercial banks projecting sustained momentum through the end of the year, according to the latest Lending Activity Survey published by the Bank of Albania.

Corporate borrowing appetite expanded across companies of all scales, driven equally by long-term investment goals and immediate liquidity demands. The central bank attributed this uptick to inventory expansion, working capital needs, optimistic business sentiment, and a favorable interest rate environment.

Concurrently, commercial banks eased lending standards for the corporate sector. Key concessions included reduced collateral demands—benefiting small and medium enterprises (SMEs) in particular—while loan approval rates edged higher on the back of stronger corporate balance sheets.

At the same time, lending terms and conditions for businesses eased, primarily through lower collateral requirements, particularly for small and medium-sized enterprises (SMEs). The approval rate for business loans rose slightly, influenced mainly by their financial statements.

For the final quarter of the year, banks expect credit standards to remain relaxed for SMEs, while remaining virtually unchanged for large corporations. Additionally, business credit demand is projected to continue its upward trend.

Regarding individuals, lending standards remained unchanged in the third quarter for both residential mortgages and consumer loans. However, the approval rate for individual loans declined, mainly due to credit registry histories.

The report notes that consumer demand for loans increased during the period—driven primarily by consumer credit to finance household consumption. On the other hand, mortgage demand saw a decline, influenced by banks’ perceptions of current and expected conditions in the real estate market.

For the fourth quarter, banks expect credit demand from individuals to remain high for both consumer financing and home purchases, while lending standards are projected to stay unchanged.