The National Bank of Serbia (NBS) is conducting additional analyses aimed at proposing concrete measures to reduce bank margins and improve loan conditions, especially for citizens with lower incomes, Governor Jorgovanka Tabaković announced. She emphasized that NBS will continue efforts to lower interest rates and ensure more favorable borrowing conditions while carefully considering both short- and long-term effects.
Tabaković pointed out that a similar approach was used to resolve issues related to loans in Swiss francs, where a solution was reached jointly by NBS, the Serbian government, and banks, without damaging relations with foreign investors.
She criticized the fact that some banks operating in Serbia—though part of the same banking groups as those in neighboring countries—offer higher loan interest rates in Serbia, despite Serbia having a lower risk profile and improved credit rating. According to her, this practice is unjustified and should change to reflect lower risk.
Tabaković also noted that Serbia was among the first European countries to implement the new consumer credit directive, which permanently limits interest rates on all types of loans. For housing loans, a fixed cap of 5% is in place through the end of 2025. As a result, the average mortgage interest rate dropped to 4.3% in June, down from 6.4% before the cap was introduced in 2023.
Interest rates on overdrafts and credit cards have also significantly declined due to new legal limits. Overdraft interest rates fell from around 27% to below 18%, and credit card rates dropped from over 22% to around 15%.
Tabaković concluded that these regulatory changes help protect citizens’ living standards and promote financial stability, while encouraging fixed-rate borrowing and shielding consumers from sudden rate hikes.
