Non-performing loan

Cyprus is starting to see some positive shifts in its financial sector, particularly when it comes to tackling nonperforming loans (NPLs). This is an important issue for the country, as bad loans have weighed heavily on its economy in recent years. But this year, things are looking up, and it's a sign that Cyprus is making real progress.

Bank of Greece Governor Yannis Stournaras on Friday noted that the country's banks have successfully reduced their nonperforming loan (NPL) ratio to just over 5%.

However, he also warned that risks to financial stability remain.

Total nonperforming loans (NPLs) to Cypriot banks have dropped below 2 billion euros, specifically to €1.9 billion. At the end of 2017, NPLs amounted to an astounding €20.5 billion, and at their peak in 2014-2015, they had reached nearly €28 billion.

Italian debt recovery company doValue, which is also active in Greece, plans to diversify its sources of revenue beyond non-performing loans, its CEO said on Friday, after it reported a €19 million net loss for 2023.

The governor of the Central Bank of Cyprus has dispatched crucial correspondence to banks and credit repurchase companies shedding light on the strategy for restructuring nonperforming loans (NPLs) and navigating credit risk management.

Nonperforming loans in the Cypriot banking system remained essentially unchanged at 2 billion euros in October 2023, marking a marginal reduction of just €2 million, in an environment of rising interest rates.

According to data released by the Central Bank of Cyprus on Tuesday, bad loans in October amounted to €2.015 billion from €2.017 billion the month before.

The Central Bank of Cyprus (CBC) issued a warning on Monday, cautioning about the potential growth of nonperforming loans (NPLs) driven by high-interest rates and inflation, which are impacting households' disposable income and businesses' profitability.

As of the end of September 2023, the total Non-Performing Loans (NPLs) in the banking system of Cyprus further decreased to €2.02 billion compared to €2.08 billion at the end of August. In comparison to the previous quarter ending in June, NPLs saw a reduction of €95 million.

BELGRADE - National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic says Serbia's banking sector is stable, highly liquid and profitable.

Recovery in the Turkish banking system's core spreads and an improved fee base will continue to support revenues, the Bank of America (BofA) has said in a recent report, adding that it sees asset quality risks as manageable.

"Normalization" is probably the best word to describe the ongoing dynamics in the Turkish banking system, the authors of the report said.