Tirana, January 11, 2016
The level of nonperforming loans has reached a low record by decreasing to 19.9%, according to a report published by the Albanian Association of Banks. This is the lowest level of nonperforming loans since in 2012, states the report.
By the end of November 2015, the portfolio of nonperforming loans was ALL 116.4 billion, decreasing slightly compared to the amount of loans registered in October 2015 (ALL 119 billion). The decrease of nonperforming loans has come as a result of Bank of Albania’s measures based on which private banks erased from their balances these types of loans. Another reason is the increase of businesses and individuals’ ability to pay their outstanding loans during the past year.
During 2015, private banks in the country reported significant increase of incomes by 36% compared to 2014 and the banking system remained well capitalized and liquid. By the end of 2015, Bank of Albania made public its goal to reduce the level of nonperforming loans below 20%.
News source/photo credits: ATA
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