Central Bank of San Marino publishes Q2 2025 bulletin showing total bank funding up 2.7% to EUR 6.779 billion and NPL ratios improving

The Central Bank of San Marino has published its Quarterly Information Bulletin for the second quarter of 2025 (data to 30 June 2025), reporting a broadly stable financial system and continued improvement in key banking indicators. Total banking system funding rose 2.7% to EUR 6.779 billion and customer lending increased by about EUR 15 million, while impaired exposures were broadly unchanged at EUR 189 million gross and about EUR 120 million net, bringing NPL ratios down to 17.5% (gross) and 11.9% (net). Banking system net worth stood at EUR 337 million, down EUR 9 million from 31 March 2025, mainly reflecting distribution of 2024 profits. Funding growth was driven by customer deposits, up 4.8% to EUR 2.550 billion (sight deposits +5.7%), alongside a 2.5% rise in indirect funding to EUR 3.037 billion, supported by increases in custody and administration (+EUR 52 million) and portfolio management (+EUR 23 million). The bulletin also reviews regulatory and supervisory activity, including two domestic public debt issuances of EUR 27.5 million each (fixed-rate 2.15% due 1 July 2030 and 2.45% due 1 July 2035) for which BCSM acts as central securities depository and paying agent, Recommendation 2025-01 setting supervisory expectations for the time commitment of senior managers subject to fit and proper requirements, and summer public consultations on rules for independent financial advisers and on an Investor Compensation Fund. At 30 June 2025, the register listed 62 authorised entities, down one after a Luxembourg insurer was removed following liquidation in its home jurisdiction.