The Central Bank of San Marino has published its Quarterly Information Bulletin for the period ended 31 March 2025, reporting a continued improvement in key banking-system metrics versus end-2024. Total system funding increased by 1.7% to EUR 6.603 billion, customer lending rose by EUR 22 million net (EUR 23 million gross), and impaired exposures continued to decline, with the gross NPL ratio falling to 17.7% and the net NPL ratio to 12.1%. Banking-system shareholders’ equity increased by EUR 3 million to EUR 346 million, lifting the equity-to-total-assets ratio to 8.2%. Funding growth was driven by a shift from direct to indirect collection, with direct funding down 2.0% while indirect funding rose 6.8% to EUR 2.963 billion, reflecting higher custody and administration volumes and bank depositary activity. Gross customer exposures reached EUR 1.066 billion, while gross impaired exposures fell to EUR 189 million; the coverage ratio on impaired exposures was 36.8% (49.3% for bad loans). The bulletin also summarises regulatory developments, including Law No. 30/2025 and Delegated Decree No. 48/2025 on state-supported lending spreads and published average effective mortgage rates for 2023, alongside BCSM Regulation 2025-01, which revises calendar provisioning in a second-pillar framework, expands permissible banking activities to include investment precious metals trading, updates rules on the accumulation of mandates for bank officers, and consolidates the insurance regulatory framework. On international work linked to San Marino’s EU integration process, BCSM completed preparation of a self-assessment questionnaire on professional secrecy compliance with the European legal framework, which is expected to be sent to the European Banking Authority in the second half of 2025 as a step towards future formal cooperation arrangements with EBA and other European supervisory authorities.

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