The new non-performing loan (NPL) rate, computed on an annualized basis and adjusted for seasonal effects, fell by 0.2 per cent in the first three months of this year, to 1 per cent; in the absence of significant disposals, the stock of these loans net of loan loss provisions and, again, relative to total loans, remained broadly unchanged.
By contrast, losses on the securities portfolio associated with market volatility are on the rise. Credit supply conditions have become less favourable in recent months, although lending to the non-financial private sector continues to grow, albeit at a moderate pace for firms. The liquidity position of the latter nevertheless remains good.