Rise in Croatian Banks' NPLs Possible, Sector Set for Consolidation
8.6.2012 18:02:00 | Author/Source www.seenews.com
The non-performing loan (NPL) ratio of Croatian banks continued to grow in 2011, reaching 12.4%, and a further rise seems possible given the country’s weak growth prospects, declining real estate prices, rising unemployment and delayed bankruptcies in the corporate sector, Raiffeisen Research said.
A consolidation in the Croatian banking sector seems inevitable since 24 out of the 33 banks there have a market share of less than 0.7%. On the other hand, the six largest universal banks - all members of international groups - will compete on a stagnant market, which is likely to constrain profit margins and might also lead to mergers, Raiffeisen Research said in its CEE Banking Sector Report issued earlier this week.
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