January 18 (SeeNews) - Albanian banks tightened credit conditions for loans to larger enterprises and eased requirements on loans to households during the last quarter of 2016 as this tendency is expected to continue in the first quarter of 2017, a survey by the country's central bank showed.
The main reasons for the tighter credit standards for enterprises were sector-related specific problems, non-performing loans, as well as the banks' perceptions about the macro-economic situation, the bank said on Monday.
According to the analysts, banks tightened credit standards for enterprises mainly through higher collateral requirements. Credit standards to households were eased through the narrowing of average margin on loans, reduction of commissions, and increase of the required debt-to-income ratio.
The central bank reported increased credit demand, which was driven mainly by the need to finance both investments and working capital.