Net interest margins averaged 3.2% across the region, while capital adequacy ratios remained above 20%, well beyond EU thresholds, according to a new study by Forvis Mazars and EMIS.

Romania led with a capital adequacy ratio of 24.9%, followed by Croatia and Poland. "Romania's banking sector is in 2025 in one of the strongest financial positions in CEE, supported by a capital adequacy ratio of nearly 25% and a non-performing loan ratio of approximately 2.5%," said Răzvan Butucaru (in picture), Partner at Forvis Mazars Romania. He noted that household credit penetration remains low at 15.2% of GDP, highlighting growth potential.

The region successfully navigated inflation that peaked between 10.7% and 15.3% in 2022, with coordinated central bank actions bringing it down to an average of 3.9% by 2024. Banks maintained strong deposit growth, with increases of 41% in Poland and 34% in Romania. Croatia reduced its non-performing loan ratio from 7.3% to 2.4%, while Romania cut it from 5% to 2.5%.

Looking ahead, the report highlights digital transformation through AI adoption and cloud systems as key competitive factors. The European Central Bank will introduce geopolitical risk stress tests in 2026, while climate risk regulations become more concrete. "Banks that anticipate these shifts and adapt early will lead," said Eric Cloutier, Group Head of Banking Regulations at Forvis Mazars.