Non-performing loans fall to 3.7% in June/ Lowest level since February 2008. Liquidity marks slight decline
Non-performing loans in the Albanian banking system have decreased again, reaching 3.70% of total loans at the end of June 2026. This is the lowest level recorded for this year and, according to Bank of Albania data, the lowest since February 2008.
In May, non-performing loans accounted for 3.77% of the total, while in June their share fell by 0.07 percentage points. During the first half of the year, the ratio has had some minor fluctuations. It was 3.85% in January, 3.80% in February, returned to 3.85% in March and fell to 3.75% in April.
By comparison, in January 2008, non-performing loans accounted for about 3.58% of total loans, in February 3.78%, and in March about 3.92%. This means that the June 2026 level is among the lowest recorded in more than 18 years.
There was also an improvement in indicators that measure the share of problem loans that remain after banks calculate reserves created for potential losses. Their ratio to banks' capital fell in June compared to May, indicating a further reduction in the risk that bad loans pose to the system.
Meanwhile, banks continue to have a high level of liquidity, although the indicator has been declining in recent months. Liquid assets accounted for 29.38% of total assets in June, down from 29.93% in May and 31.27% in January.
Banking sector profits also remained stable. Return on equity, a key indicator of bank profitability, was 12.13% in June, down from 12.46% in May. Return on assets was 1.48%, almost unchanged from 1.50% in May.
Data show that the quality of loans in the banking system continues to improve. The share of loans with repayment problems is now close to the lowest levels recorded at the beginning of 2008.
Fire in Kruja/Rama: It ended with only one warehouse burned down and no residents injured
Prime Minister Edi Rama informed today that "an extraordinary battle with the fire on Kruja Mountain has ended with only one warehouse burned down and no......
Improving the quality of credit risk assessment - The draft law provides for the establishment of Credit Bureaus as private entities
The Ministry of Economy and Innovation has issued for public consultation the draft law "On Credit Bureaus". Its purpose is to ensure the availability of......
Greece, the "magnet" of European tourists - Survey, 29% of respondents plan to travel by May 2027
The dynamics of Greek tourism are confirmed by the first findings of the National Tourism Organization's market research and at the same time highlight the......
Transporters warn of border blockades - Western Balkan associations demand suspension of Schengen 90/180 rule
International transporters from North Macedonia, Serbia, Bosnia and Herzegovina and Montenegro have warned of fierce protests and blockades of border......
Energy crisis also in Romania - Government approves plan to curb industrial consumption
Romania's government approved a plan to address electricity shortages in situations such as earthquakes, wars, pandemics and droughts, with an option to......
China adds to gold reserves - Growing at the fastest pace since October 2023
China's central bank increased gold purchases for the fifth consecutive month in July, adding more bullion to its reserves since October 2023, official data......
IHP measures risk factors for chronic diseases - Prevention, less cost for health and the economy
Albania will conduct a new national survey to measure the main risk factors associated with noncommunicable diseases. Through the World Health Organization's......
How have municipal revenues changed in 10 years? - Taxes that account for the main share in local budgets
Municipalities have significantly increased their revenues over the past decade. During the ten-year period 2015–2025, the fiscal performance of local......
