Standard loans are also called as regular loans, because they show no problem in time and amount of repayment;
Loans in collection represent the loans that show the first signs of delays in repayment and are under the supervision of the bank, but not yet classified as problematic loans;
Sub-standard loans are called the loans that are not classified as standard loans, due to delays in repaying , and are classified as problematic;
Past due loans are called the loans that have significant delays in their payment, but the bank still has hope in their collection and are classified as problematic loans;
Written off Loans, are called the loans that can not be collected on the bank and are classified as problematic loans.
Graphically, the share of loans according to the above categories has changed as follows (indicators are on annual basis):
Source: Bank of Albania (BOA)
Comments and Analysis: Open Data Albania (ODA)
Source: Bank of Albania (BOA)
Comments and Analysis: Open Data Albania (ODA)
During the third quarter of 2010, in the total banking system the problematic loans were at the level of 13.5% divided into sub-standards loans (5.84%),past due loans (3.79%) and written off loan (3.88%).
The growth rate of the weight of problematic loans to total loans is troubling, because it shows clearly the increasing difficulty of paying of businesses and individuals, which affect and increase the overall risk.
Source: Bank of Albania (BOA)
Comments and Analysis: Open Data Albania (ODA)