Page 71 - SE Outlook Regions 2022

Albania has one of the smallest shares of online retail in Europe, but
more people started being online during the pandemic and this
continued into 2021, when 21.4% of the population aged 16-74 saying
they had made an online purchase in the preceding 12 months.

Closures of bricks and mortar shops during the early months of the
pandemic added to the existing trend of a gradual increase in online
shopping. However, Albania’s online retailers continue to struggle with a
lack of trust and a widespread use of cash rather than payment cards.
Among the products and services bought online, the most popular were
clothing, shoes and accessories.

3.1.2 Banks

The Albanian banking sector has appeared resilient to the external
shocks from the two-year pandemic, central bank governor Gent Sejko
said in an address to bankers on December 16.

The activity of the sector has continued to expand, supported mainly by
domestic deposits, which account for over 80% of assets. Sejko noted
that the pandemic has not affected the overall capitalisation of the
banking system, thanks to increased capital additions and prudent
policies on dividends followed by banks. “Profit has improved while
liquidity remains high,” said Sejko.

Meanwhile, banks’ loan portfolio shows “well-diversified growth” both in
lek and foreign currencies, for businesses, retail and mortgage loans.

The non-performing loan ratio has decreased to 6.3%, as a result of
both the expansion of the loan portfolio and the reduction of
non-performing loans. According to the central bank governor, "there is
still ample room for credit growth, given the abundant liquid reserves,
low credit/deposit ratios and positive profit, which can fully support
capital".

71 SE Outlook 2022 www.intellinews.com