The latest National Bank of Serbia review shows a banking sector capable of supporting further corporate lending despite slower economic growth. At the end of the first quarter of 2026, the system-wide capital-adequacy ratio stood at 19.5 per cent, while non-performing loans remained at only 2.1 per cent of gross lending.
Sector profitability was still elevated, with annualised return on equity of 18.1 per cent and return on assets of 2.5 per cent. Customer deposits were equivalent to 120.3 per cent of non-interbank loans, giving banks a relatively stable domestic funding base and reducing reliance on wholesale markets.
Liquidity has moderated from the exceptional levels recorded earlier in the decade but remains comfortable. Liquid assets represented 35.3 per cent of total assets, while the average monthly liquidity ratio was 2.3. Foreign-currency and foreign-currency-indexed lending still accounted for 56.1 per cent of total loans, leaving borrowers exposed to euro interest rates even though the dinar exchange rate remains tightly managed.
The figures support continued competition in corporate, mortgage and cash lending. They also indicate that the next stage of banking-sector growth will depend more on loan volumes, payments and fees than on further reductions in credit losses.
