According to data from the Bank of Albania, the loan portfolio of non-bank financial institutions in September 2024 reached Lek 60.2 billion or about Euro 608 million.

The loan portfolio granted by these institutions decreased slightly by 1% compared to the previous quarter, but remains in growth on an annual basis, by 12.2% compared to the same period a year ago.

In the vast majority, the loan portfolio of non-bank financial institutions belongs to lending and microfinance entities. It is estimated that the loan granted by this sector already constitutes approximately 7.4% of the total loan portfolio for the economy.

The lending of non-bank financial institutions is mainly given in the local currency and in the middle of this year, the loan in Lek accounted for almost 69% of the total value of the loan portfolio.

Loans in lek have remained at approximate values ??compared to the second quarter, while the decline has mainly come to the loan segment in foreign currency. In part, the decrease can be explained by the effect of the exchange rate and the continued appreciation of the lek against the euro.

The main contribution to the growth of lending outside the banking sector in recent years has been given in particular by microfinance products. Microfinance credits the consumer needs of individuals and the activity of small and micro businesses, mainly in that segment that does not find access to financing from the banking sector.

However, the rapid growth of lending from the non-banking financial sector especially from the segment of microfinance products may be affected by the new regulatory measures expected to be adopted by the Bank of Albania.

Based on the regulation "On risk management in the activity of non-banking financial entities", which came into force at the beginning of 2025, a tightening in the lending spaces of non-banking financial institutions is expected.

A non-banking financial institution will not be allowed to grant more than two consumer loans to the same borrower at the same time. In addition, a ceiling level has been defined in the debt service ratio against income (DSTI), which will be calculated as the value of the total monthly installments of existing loans, including the loan for which it is being applied, divided by net income of all co-borrowers.

The value of the ratio of debt service against income should not exceed the value of 60%. This value can be higher only in cases where the borrower has sufficient and proven evidence that the higher level of the DSTI ratio does not affect the usual living expenses and therefore the payment of the loan obligations.

The new regulation also stipulates that the financial institution, before concluding a loan contract and during the process of monitoring the loan in its duration, must assess the solvency and risk profile of the borrower, based on sufficient, accurate, and updated.