Banks end 2025 in strongest position in years

Albania’s banks ended 2025 with fewer bad loans, more lending and strong financial buffers, the central bank said.

Bad loans, officially known as non-performing loans, or NPLs, fell to 3.8%, their lowest level since 2008.

Bank lending grew by 13.5%, while capital and liquidity remained well above the required minimums.

The central bank said the sector remained stable despite wider economic risks.

Regulators also tightened oversight, carrying out 12 inspections and imposing fines, suspensions and licence withdrawals for breaches.

Rules on consumer loans and bank advertising were also tightened.