Non-performing loans return to 3.85% in March/ Banks maintain stability, bad loans remain below 4%
The non-performing loan ratio in the Albanian banking system increased slightly to 3.85% at the end of March 2026, after the 3.8% level recorded in February. Data from the “Bank of Albania” show that the indicator has returned to the same level as in January, remaining nevertheless below the 4% threshold and at levels considered stable for the banking sector.
The movement of the first three months of the year shows an overall stability of the quality of the loan portfolio, although with slight monthly fluctuations. In January 2026, the non-performing loan ratio was 3.85%, in February it decreased to 3.8%, while in March it rose again to 3.85%.
In parallel, capital indicators show a further strengthening of the financial position of banks. In March, regulatory capital to risk-weighted assets reached 20.44%, while regulatory tier 1 capital to risk-weighted assets was recorded at 18.58%.
Meanwhile, banking sector profits have shown a slowdown during the first quarter of the year. Profitability indicators fell in March compared to January and February, signaling a slowdown in the pace of bank profits.
Liquidity levels also remain high, albeit with a slight decrease from month to month. This means that banks continue to have sufficient financial resources to meet short-term obligations and customer requirements.
Overall, the data of the "Bank of Albania" show that the Albanian banking system remains stable, with good levels of capital and liquidity, while the non-performing loans ratio continues to remain below the 4% threshold, despite slight fluctuations during the first months of the year.
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