Macedonia banking system reports downturn in quality of loan portfolio

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The quality of loan portfolio in the Macedonian banking system registered a slight downturn in the second quarter of 2017, Macedonia’s national bank NBRM said in a report Friday.

According to the bank’s experts, total nonfunctional loans of the banking system have increased by 8.1 percent.

“The increase in participation of nonfunctional loans in total loans is concentrated in the corporate loan portfolio, where participation reached a level of 10.6 percent as the participation of nonfunctional household loans in total household loans retains the same level, 2.5 percent,” the bank said in the report.

It noted that a continual rise in nonfunctional loans was recorded in the last five quarters.

However, the central bank assessed that the banking system in the second quarter attained a high level of stability with the tendency to rise.

It also said that liquidity of banking sector in the second quarter was considered to be at a satisfactory level as the total assets rose by 0.6 percent.

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