The NPL rate is nearly four times lower than at its peak in 2014, when the average rate was around 25% and nearing 30% among the largest banks in the country.
“We expect the non-performing loan rate to grow slightly on the short term after declining in the past few years, spurred by decelerating economic growth, increasing nominal financing costs and the high number of people with bank loan installments that exceed 55% of their income,” said Banca Transilvania chief analyst Andrei Radulescu.