The quality of loan portfolio in Albania improved in 2018 and in November alone the non-performing loans (NPL) ratio of the country’s banking system dropped to 12.7 per cent of all loans, the BoA said.
According to the Bank of Albania (BoA), the banking sector in Albania is continuously improving, reports Xinhua.
The central bank said that at the end of the third quarter (Q3) of 2018 the indicator of the NPL ratio stood at 12.43 per cent from 13.23 per cent at the end of the previous year.
The improved loan portfolio quality is mainly attributed to their repayment and in the meantime recoverability provided additional contribution as well.
The BoA has drafted a special regulation for the systematic and formalized treatment of non-performing loans, especially in the case of large borrowers.