Banking sector in Serbia has EUR 27.5 billion

BELGRADE - Banks in Serbia had a total of EUR 27.475 billion in October this year, the National Bank of Serbia (NBS) has said in a statement.

Foreign exchange deposits (EUR 10.23 billion) topped the list of the banks' liabilities in October, followed by capital and reserves (EUR 5.08 billion), other liabilities (EUR 4.4 billion), foreign liabilities (EUR 3.59 billion), a-vista deposits (EUR 2.1 billion), dinar savings and term deposits (EUR 1.55 billion) and government deposits (EUR 451 million).

The banks invested more than a third of their funds - EUR 9.2 billion - into loans to businesses, with just under one fifth - EUR 6 billion - invested in retail loans.

The banks' deposits with the NBS amounted to EUR 4.1 billion in October, loans to the government totalled EUR 4 billion, with around EUR 3.8 billion invested elsewhere.

The level of utilisation of state subsidy packages indicates that there is potential for financing businesses, the NBS said.

However, banks have very high risk assessment criteria when it comes to approving loans, while a lack of "quality" demand is the main limiting factor for growth of credit activity.

A changed perception of the risk of approving funds, in particular to companies in Serbia, could prove to be a key factor for growth of credit activity in the banking sector, the NBS said.

Halting the growth of non-performing loans (overdue) loans and reducing their current level will be an additional prerequisite for further credit growth, the NBS said.

Photo Tanjug, M. Jelesijevic