Non-performing Loans Ratio Hits Record Low

Non-performing Loans Ratio Hits Record Low

TIRANA, October 7

The Non-Performing Loans (NPL) ratio in Albanian banks dropped to 11 percent, in August 2019, thus reaching the lowest level since December 2009. Even though at a low pace, the NPL ratio is dropping and the goal is to reach a single-digit ratio.
A low level of NPLs encourages bank’s lending activity. As the Bank of Albania (BoA) governor, Gent Sejko said last week, this results in a growth in credit supply.

In the meantime, the retail credit portfolio was at a growing rate of 5.2 percent (annual comparison basis).
Meanwhile, low-interest rates and the restructuration of the banking system is having a positive impact on lending. In the meantime, the loan deposit ratio was low at 48.5 percent.

Source: Scan TV

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