Growth in non-banking lending neutralizes the share of NPLs

The share of non-performing fast loans decreased in the second quarter of this year, according to BNB data. The main reason is overall growth of the portfolios of companies specializing in lending. In terms of value, overdue fast loans increased by almost BGN 14 million (EUR 7.16 million) or 4.4% in just three months. Total loans granted by non-banking companies increased by 6.2% from March to the end of June.

These data include both typical “fast” loans and consumer loans granted by the subsidiaries of banks. In some cases they are identical to consumer loans with interest rates up to 8-10%, in others the interest rates are around the maximum of 50%. The differences are also in the risk profile of the clients.

On an annual basis NPL decreased both in terms of value and share. Their value dropped by 4%. Their share is currently 6.8%, and a year ago it was over 8.4% of all granted loans.

Compared to 2022, in 2023 we saw a significant increase in loans with a maturity of more than 1 year – both those up to 5 years and longer-term ones. In the shortest term the increase is minimal. The largest number of non-bank loans continue to be used mainly by households, with housing loans halving in the second quarter, and those in the “Other” column increasing sharply (see the chart 👇).

View ENG_BNB_NPLs in non-banking sector_VI.2023 on


Bank lending has also continued to grow in the last year, despite the BNB’s attempts to limit it by holding more buffers and reserves of banks. As of the end of July bank loans reached BGN 85.58 billion (EUR 43.76 billion), with 11.2% growth for the year, according to BNB monetary statistics. Corporate loans grew the least, while those for financial enterprises increased by almost a quarter. However, they are a small part of the banks’ loan portfolio. Among loans for households, the biggest increase on an annual basis is in mortgage loans, with 18.3%, so their value is now close to BGN 18.2 billion (EUR 9.31 billion).