Bulgarian banks improve loan quality in Q3 '06
The quality of the banks' loan portfolios improved in the third quarter of 2006, shows data released by the bank supervision department of the Bulgarian National Bank.
The share of performing loans increases from 92.9% in April-June to 93.1% by end-September 2006.
The credit quality reading is expected to improve by a couple of percentage points with the expiry of the rule which required a particular loan to be booked as a classified exposure for a period of at least 6 months even if it had been overdue by no more than a day.
The banks' consumer exposures continued to deteriorate in Q3 with the share of bad loans inching up to 10% from 9.1% a quarter ago.
The share of bad mortgage loans ticked up slightly from 7.7% to 7.8% while the share of bad corporate loans fell to 6.3% from 8%.
Suspect loans rose 7% in Q3 and were up 15% over the 12-month period with the 10 biggest banks contributing 97% of the new classified exposures. The bulk of the bad household loans are also on the books of 10 biggest banks.(Dnevnik)
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8 February 2007 |
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