• Rilind Ademi European University of Tirana, Tirana
Keywords: credit to private sector, financial crisis, banks, deposits


The banking sector constitutes nearly the whole financial system in South East Europe and Central East Europe and as such is vital for the placement of loans in the economy.

The period before the global financial crisis recorded high growth in loan, averaging 30% per year during 2004 to 2008.The period during and after the crisis recorded significant falls in loan rates, generally from reductions in funding from abroad and which before the crisis were abundant.

This paper aims to examine loan rates in both periods, comparing the potential determinants of credit in the private sector. We also attempt to answer whether there was excess lending before the crisis and in addition deficient lending during and after the crisis.


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