The market of non-bank financial institutions is shrinking - BoA: The absorption of one of the lending entities by a bank changed the performance
The non-bank financial institutions market shrank during 2025, mainly as a result of the transition of one of the largest lending companies to the banking system.
According to the latest report of the Bank of Albania, 22 non-bank financial institutions were operating in the country at the end of 2025. No new entity was licensed during the year, while one non-bank financial entity was absorbed by a bank and another entity lost its license.
The transition of this entity to the banking sector affected the reduction of the assets and loan portfolio of non-bank institutions. However, these entities continue to play an important role in financing the economy, especially for individuals and businesses seeking alternatives outside of banks.
The majority of their activity is in loans, which account for about three-quarters of assets. Meanwhile, the main source of financing remains loans that these institutions receive from banks or other financial institutions, while a smaller portion is financed by their own capital.
The data shows that the loan portfolio is more oriented towards individuals than businesses. On the other hand, the sectors that have benefited the most from financing are trade, accommodation and food services, as well as agriculture.
The report highlights that the activity with the highest growth during the year was financial leasing, known as leasing. Financing for personal and business vehicles has made the main contribution to this growth.
Meanwhile, factoring activity, which enables businesses to collect unpaid invoices more quickly, remains a small segment of the market. Although the value of the portfolio has increased slightly, overall turnover and the number of invoices financed have decreased compared to a year ago.
According to the Bank of Albania, financing from non-bank institutions continues to be provided mainly in lek and with medium-term repayment terms, remaining an alternative source of financing for households and businesses in the country.
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