If the citizens of Serbia started to panic today and withdraw their savings from the banks, as in the crisis of 2008, when they withdrew a billion euros, or even much more, the banking sector would remain liquid. Deposits held by citizens and businesses in banks in Serbia are the main source of bank financing.
The National Bank made an analysis with the help of liquidity stress tests to determine whether, in the event of a similar or stronger shock than in 2008, the banking sector would be able to continue with normal operations.
In the case of the “worst case scenario”, which implies a major shock, the liquidity indicator would drop below the regulatory minimum for a bank that accounts for 2.8% of the total balance sheet assets of the banking sector. Other banks would be in the safe zone. Assuming that 33.7 percent of total deposits are withdrawn from banks, the liquidity indicator would drop to one, which is the prescribed minimum.
New economy previously wrote that the total insured deposits in Serbia amounted to 25.3 billion euros (citizens and the economy), at the end of the third quarter of last year, the Deposit Insurance Agency announced.
The total amount of insured deposits is even three times higher than in 2008. Total funds in the accounts of citizens, entrepreneurs and micro, small and medium-sized legal entities have grown by an average of 10 percent per year over the last 14 years.
Two thirds of all insured deposits are citizens’ deposits. Deposits placed with banks are made up of the savings of the population, the economy, public companies, and the non-monetary sector.
Sign up for business updates & specials.
