UBS wants to keep banking system stable after CHF hike

BELGRADE - The management board of the Association of Serbian Banks (UBS) discussed on Friday the situation in the Serbian banking sector, with particular focus on the effects of the rise of the Swiss franc.

Although the situation does not have the characteristics of a system problem, it requires continuous monitoring and analysis of the market situation in order to alleviate the consequences to all those affected and maintain stability and basic functioning parametres of the banking and financial systems, the board said.

Certain priniples have to be followed when searching for the solution in this and any other situation, all with the goal of protecting the stability of the banking sector, according to a UBS statement.

This refers to equal treatment of all clients in the market and taking individual risk and responsibility, when it comes to both the clients and the banks, the statement says.

The UBS also points out that it gave out recommendations to its members earlier as well, when difficulties appeared with the citizens' servicing their debts to banks, listing as examples 2011, when it happened based on an initiative from the minister of finance, and 2013, when it followed the recommendations of the National Bank of Serbia.

The UBS recommended back then that its members allow their clients to convert their loans tied to the Swiss franc to ones tied to the euro, a grace period of two years, extended deadline for payment and other conveniences.

However, very few of the clients took advantage of these options at the time, the UBS stressed, adding that the expert committees of its member banks and within the UBS itself would continue to monitor and analyse the situation on the market, so the banks could react...