Serbian banks well-capitalised, profitable, highly liquid

Governor Tabaković highlighted Serbia's strong economic fundamentals, citing the IMF Executive Board's assessment of a broadly aligned external position, moderate public debt, high international reserves, and a well-capitalised banking system.

She noted that Serbia's inflation remains within the National Bank of Serbia's target band, supported by the relative stability of the dinar exchange rate against the euro.

The country also boasts record-high foreign exchange reserves of EUR 29.9 billion as of May 2026, covering seven months of imports.

With projected real GDP growth of 3.0 percent this year and an acceleration to 4.5 percent in 2027, Serbia is set to be one of Europe's fastest-growing economies.

Additionally, wages have seen strong real growth of around 8.5 percent on average over the past two and a half years.

Serbian banks are well-capitalised, with a system-level capital adequacy ratio close to 20 percent, covering all material risks.

High liquidity buffers are maintained, evidenced by a liquidity coverage ratio (LCR) of nearly 160 percent, well above the regulatory minimum.

The net stable funding ratio also significantly surpasses the EU average.

Public confidence is reflected in strong deposit growth, with dinar savings reaching RSD 225 billion and FX savings at EUR 16.9 billion.

Non-performing loans account for only 1 percent of housing loans, indicating strong borrower discipline and asset quality.