The Central Bank of San Marino has released its Quarterly Information Bulletin up to 31 December 2024, reporting continued improvement in key banking system indicators alongside an overview of regulatory developments and supervisory activity. Compared with 30 September 2024, system funding increased and asset quality strengthened as non-performing exposures fell sharply. Total funding rose by EUR 139m (+2.2%) to EUR 6.493bn, driven mainly by direct funding (+EUR 96m, +2.6%). Net performing exposures increased by EUR 25m (+3.0%) to EUR 839m, while net non-performing exposures declined by EUR 44m (-25.8%) to EUR 128m, taking the gross NPL ratio to 19.0% from 23.3% and the net NPL ratio to 13.2% from 17.5%. The coverage ratio on non-performing exposures rose to 35.3% from 30.7%, and banking system shareholders’ equity increased by EUR 6m to EUR 343m. The bulletin also highlights two Central Bank of San Marino regulations issued in Q4 2024, including a SEPA payments rule effective 1 December 2024 covering instant transfers and further alignment with the second Payment Services Directive, and an investment services rule effective 1 January 2025 introducing a framework for investment firms and adding market and settlement risk capital requirements for banks while aligning the minimum capital coefficient to 8%. A draft package of targeted supervisory rule revisions was consulted on between 26 November and 27 December 2024, with the adopted measure to be covered in the Q1 2025 bulletin.

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