The Central Bank of San Marino has published its quarterly newsletter for the first quarter of 2026, providing an update on the financial system, supervisory activity and regulatory developments. The bulletin says banks' technical profiles continued to strengthen, MiFID II standards continued to be consolidated and work on aligning the prudential framework with Basel III progressed, with market and settlement risk already implemented and analysis started on the new operational risk measurement rules and liquidity ratios. Banking system funding rose by EUR 36 million from the end of 2025 to EUR 7.033 billion, gross lending to customers increased 1.3% to EUR 1.111 billion and the gross NPL ratio fell to 16.1% from 16.3%, while shareholders' equity remained at EUR 358 million. On the regulatory side, the quarter included issuance of the Central Bank's 2026 Miscellanea regulation, which made targeted revisions across the supervisory framework. The changes covered areas including accounting treatment for trading securities, authorization rules for foreign third-party providers offering account information and payment initiation services on domestic payment accounts, annual reporting simplifications for insurance intermediaries, alignment of professionalism requirements for financial promoters and independent financial advisers, related-party definitions, anti-usury threshold calculations and information flow validation sent to the central bank. Supervisory activity also reflected the start in January of extraordinary administration for a recently established electronic money institution, which helped lift total Coordination of Supervision decisions to 35 from 29 in the previous quarter. Internationally, the Central Bank formalized cooperation with Bulgaria's Financial Supervision Commission through a memorandum of understanding and continued information exchanges with the European Central Bank and Germany's BaFin. The bulletin also notes that work was under way on a broader update to supervisory accounting rules. A draft circular was consulted on during the quarter and adopted in April 2026, with further treatment deferred to the second quarter newsletter.
Central Bank of San Marino2026-07-21
Central Bank of San Marino publishes first quarter newsletter, banking system funding tops EUR 7 billion as Basel III work advances
The Central Bank of San Marino's first quarter 2026 newsletter says banking system funding rose above EUR 7 billion, customer lending increased 1.3% and the gross NPL ratio fell to 16.1%, while equity held at EUR 358 million. It also reports continued consolidation of MiFID II standards and further Basel III alignment, with work starting on operational risk and liquidity rules. Supervisory activity included targeted rule revisions and the extraordinary administration of a recently established electronic money institution.