"The strengthening of the lek brought about a slowdown in price growth" - Sejko: BoA strengthened monetary and financial stability. Property loans, under monitoring
The Bank of Albania will continue to monitor the growth of real estate loans, foreign currency lending, sectoral concentrations, collateral quality and the balance between the maturities of banks' assets and liabilities.
While reporting on the implementation of the recommendations of the Assembly and the activity of the Bank of Albania to the Parliamentary Committee on Civic Initiatives, Cooperation and Institutional Oversight, Governor Gent Sejko said that the BoA strengthened monetary and financial stability.
Meanwhile, regarding real estate lending, he emphasized that the Bank has strengthened data collection on housing loans.
“The Bank of Albania has treated the growth of real estate lending as a potential source of risk to financial stability. When property prices rise rapidly, banks and borrowers may become less cautious; when the cycle reverses, losses appear quickly. For this reason, the Bank has strengthened the collection and analysis of data on loans for housing, commercial properties, construction and real estate projects. In May 2025, the Bank of Albania approved upper limits for two main indicators: the size of the loan in relation to the value of the property and the weight of the monthly installment in relation to the borrower’s income”, said the Governor.
Regarding the exchange rate, the Governor stated that the strengthening of the lek has helped to keep price increases under control. The Bank of Albania has significantly increased its supervisory attention to foreign exchange offices, as a sector with high exposure to risks related to the circulation of physical money and direct contact with the public. During 2025, 27 inspections were carried out, 201 fines were imposed and 80 licenses were revoked.
"Since 2021, the Lek has been on a rapid and continuous strengthening trend against the Euro. According to our analysis, this trend has been supported by increased tourism revenues, remittances, foreign direct investment, labor income and the improvement of the external position of the economy. More foreign currency has entered the economy and confidence in the Lek has increased. The strengthening of the Lek has helped reduce imported inflation, enabling price increases to slow down faster and at less cost to the economy," said Sejko.
As for other recommendations, including approximation with the European Union framework, the Bank of Albania is advancing a package of legal reforms, centered on the new banking law.
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