Annual Report 2010 03 August 2011 - Banka Qendrore e ...

CBK
Annual Report 2010
evidenced a decline of euro 29.6 million or 12.7 percent. Following this change, the chare of
item ‘cash and balance with CBK’ in total banking system declined from 15.4 percent that
was last year to 13.2 percent in 2010.
“Requirements against banks/placements” recorded a growth of around euro 15.1 million or
3.6 percent compared to the previous year. However, the growth of placements was
considerably slower compared to last year, where these were increased with around euro
140 million or 49.3 percent. A slower growth of placements decreased their weight within
the total equity from 20.2 percent in the previous year to 18.9 percent in 2010. A faster
growth of placements during the previous year was mainly driven by conservative approach
by banks in granting new loans, which came as a result of the assessment on the impact
that the global financial crisis could have on the economic conditions in general and its
direct effect in refunding loans. Similar to the previous year, in 2010, CBK was also active
in following a rather conservative approach in terms of existing limits of exposures abroad
by banks and financial institutions. In this aspect, the requests by banks to increase the
placements ratios within a financial institution over the limit of 20 percent of tier I capital
have been rejected in most cases. This policy (applied in 2009 and continued in 2010 as
well) was imposed to CBK taking into consideration the new circumstance created in global
financial markets as a result of crisis overwhelming the world financial markets.
Investments in securities is an equity item which recorded the highest growth last year,
namely euro 76.4 million or 78.8
percent. This inclination to the
growth ratio of securities is mainly
attributed to the decline of weight
of Cash and balance with CBK and
Figure 46. Loans trend in bankng sector - total
loans, in thousands of euro
1,450,000
1,400,000
Placements with other banks
within the equities, as well as the
1,350,000
improvement of conditions in 1,300,000
international financial markets
1,250,000
during 2010. This made the share
of securities within the equities to
increase from 4.6 percent that was
1,200,000
1,150,000
last year to 7.5 percent in current
year.
Dec 2009
Source: CBK (2011)
Mar 2010 Jun 2010 Sep 2010 Dec 2010
“(Gross) Loans and Leasing” recorded a growth of euro 170.4 million or 13.5 compared to
last year. Growth of loans in the current year continued with a faster trend compared to the
previous year, recording a growth of 13.5 percent, while the growth last year was 9.2
percent. A faster growth of loans during the current year was reflected by the increase of
share in total (net) loans within the total equity from 56.6 percent that was last year to 57.5
percent in current year.
Loans classified as ‘’standard’’ increased to euro 154.5 million or 13.6 percent, while loans
classified as “observing” decreased to euro 20.2 million or 43.6 percent during 2010. At the
same time, loans classified as “substandard” increased to euro 6.9 million or 23.0 percent,
while loans classified as “suspicious” increased to euro 18.6 million or 118.4 percent. Loans
classified as “loss” increased to euro 10.7 million or 27.0 percent.
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