"Appetite" for credit increases in May/ New loans reached 39.9 billion lek, the expansion was supported by individuals
According to the latest data from the "Bank of Albania", total credit to the economy reached 978 billion lek at the end of May 2026, expanding by about 9.8 billion lek compared to April. The increase confirms the continuation of the positive performance of lending, while the credit stock is increasingly approaching the level of 1 trillion lek.
At the same time, new loans disbursed by the banking system during May reached 39.9 billion lek, up from 34.4 billion lek in the same month last year. This translates into an annual growth of about 16.0%, while the May 2026 level is the highest ever recorded for this month.
The expansion in lending continues to be driven mainly by businesses. New loans to private non-financial corporations reached 25.5 billion lek in May, up from 23 billion lek a year earlier, marking an increase of about 11%. This indicates that demand for financing from the private sector remains strong, as businesses continue to invest and expand their activities.
Meanwhile, borrowing rates have also accelerated among individuals. New loans to individuals and the non-profit institutions that serve them reached 14.2 billion lek, up from 11.4 billion lek in May 2025, marking an increase of about 25.2%. This is the highest level ever recorded for the month of May.
The growth has been driven mainly by loans for house purchases. During May, banks disbursed 7.4 billion lek in new loans for this purpose, up from 5.9 billion lek a year earlier. With an annual growth of around 25.4%, this category registered the highest historical level for May, indicating that the demand for financing house purchases remains very strong, despite the tightening measures taken by the Bank of Albania on mortgage lending.
The data shows that, unlike the first months of the year when housing lending showed signs of slowing, real estate lending regained momentum in May. This suggests that demand in the housing market remains high, while households continue to rely on bank financing for property purchases.
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