NPLs went down to 17%; loans written off had an impact
“The quality of loans has improved significantly as a result of the fall of non-performance loans to 17% or 64 billion leks”. This is another confirmation made by experts of the Bank of Albania, according to whom this is the lowest level of NPLs registered since 2010. In addition to the fact that more customers have paid their loans, the fact that banks have written off a number of loans has led to a fall in NPLs. Another factor which seems to have had an impact on this is the fact that many non-performance loans have been restructured and outstanding instalments have been paid. “Since June 2018, the amount of NPLs which have been repaid amounts to 17.6 billion leks, while 4.5 billion leks worth of loans have been written off”, experts of the central bank confirm among others.
Fewer NPLs in large banks
“The main contribution given for the improvement of loan quality has been made by large banks”, Bank of Albania confirms. According to this institution, the ratio of NPLs for large banks fell from 14% to 11%”, experts also explain. “Medium sized banks have highest ratio of NPLs with 11.6%, while small banks have the lowest one with 8.8%. Structural changes have also had an impact on this”, the Financial Stability Report says.