Albanian Association of Banks published a report about nonperforming loans which shows that a decrease of these types of loans has been reported by second tier banks during December 2014. Nonperforming loans decreased by 22.8% during December of past year, compared to data published in three previous months, in 2014.
The total amount of banks’ assets reached the value of 1.294 billion ALL during December 2014, a 4.8% high value compared to a year before or 1.7% more if compared to the three previous months. The bank system in country continues to remain stable and liquid compared to the capital adequacy ratio of 16.8% at the end of December, from 12% that is the minimal ration set by Bank of Albania.
The total amount of deposits allocated by banks at the end of the past year reached 1.072 billion ALL, increasing by 2.1% compared to the previous three months of 4.5% compared deposits allocated at the end of 2013.
The latest report on nonperforming loans published by Albanian Association of Banks was praised by Prime Minister Edi Rama which in a Facebook update considered this as good news. “Good news, nonperforming loans decreased to 22.8% in December, compared to the previous quarter. Positive signs of economic revival continue,” said Rama in his update.
The higher increase has been noticed in institutions and businesses deposits but even deposits of individuals have increased slightly but continually, with an increasing average of 2.6%. According to experts, the positive performance of deposits has been affected by the displacement of savings and short term deposits to deposits’ products with more than two year maturity terms, which offer higher interest rates.
News source/photo credits: ATA