Bank of Albania has released a new report about the current performance of nonperforming loans which shows that this type of loans decreased to 20.2% during September from 21% in August of this year. The report argues that the decrease of nonperforming loans’ level has come as a result of the erase of these loans by private banks’ balances and their return from businesses and individuals.
Private banks in Albania registered a progressive profit of ALL 11.6 billion during the period of January – September 2015, 30% more than the profit registered in the same period of a year before.
Nonperforming loans have been one of the most crucial problems of the banking system in Albania due to the high level of these loans and the inability of businesses and individuals to return these loans.
After the banking system was liberalized after 2003, most of the private banks started lending at high amounts and the economic crisis of 2008 put the banks and loan takers in difficulties. Since then, the banking system has been suffering from the high level of nonperforming loans which is decreasing continually.
News source/photo credits: ATA