Serbian bank NPL ratio drops to record low
National Bank of Serbia Governor Jorgovanka Tabaković reported that the domestic banking sector's non-performing loan ratio fell to a record low of 1.98 percent, while bank capital adequacy exceeded 20 percent as of mid-2026.
Balance sheet resilience and historic lows
Addressing the conference, Tabaković outlined key financial stability indicators, noting that banking sector assets reached RSD 7,353 billion at the end of July 2026.
The share of non-performing loans fell to a historical low of 1.98 percent, with housing loan non-performing rates below 1 percent.
Capital adequacy stood above 20 percent at the end of June 2026, while the liquidity coverage ratio reached 199.14 percent, roughly double the regulatory threshold.
Tabaković contrasted these figures with August 2012, when non-performing loans accounted for one in five credit exposures, the dinar had depreciated 33.2 percent over four years, and EUR 5.7 billion had been deployed defending the currency.
Insurance growth and new regulatory statutes
The insurance sector similarly recorded balance sheet expansion over the past fourteen years.
Total premiums rose from RSD 61.5 billion to RSD 191.5 billion, representing 1.8 percent of GDP, while total assets expanded to RSD 455.7 billion and capital reached RSD 98.3 billion.
Settled claims grew to RSD 96.9 billion over the same horizon.
Tabaković pointed to upcoming statutory updates, including draft laws on credit institutions, insurance, and financial conglomerates, designed to align domestic regulation with sector innovation and emerging operational risks.
Past stability guarantees nothing ahead
The reported capital and liquidity metrics demonstrate a structurally sound banking system.
Yet long-term sector resilience depends on strict enforcement of new legal frameworks rather than past gains.
Real credibility will hinge on maintaining this stability through future credit cycles.
Source: Opening address - “Key trends 2026” conference
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