Jorgovanka Tabaković, Governor of the National Bank of Serbia

Thanks to the backing and regulatory role of the National Bank of Serbia (NBS) and the concerted efforts of the banking sector, we now have a system that is more stable, attuned to the needs of both the economy and citizens, and firmly oriented towards the development of digital services

The banking sector in Serbia, like all others, must share the fate of the wider economy and its citizens – only then can we ensure longevity. In recent years, this sector has witnessed accelerated consolidation, an ever-stronger focus on financing small and medium-sized enterprises, increased investment in innovation and digital infrastructure, and a clear profiling of the social role of banks within society.

The consolidation of banks in Serbia has brought greater stability and benefits to citizens through more efficient services and record- high savings – as neither banks nor any other institution should exist solely for their own sake, but for their clients. Only within this mutual relationship, where all interests intertwine, can achieved success be preserved and advanced.

Over the past several years, Serbia’s banking sector has seen a continuing trend of mergers and acquisitions. This process was predominantly driven by changes in the ownership structures of individual banks, initiated by their parent companies in response to developments in their countries of origin. Global consolidation trends and the pursuit of stronger market positioning have also played a key role.

Today, the banking sector in Serbia comprises 19 banks – 15 with majority foreign ownership, two privately owned by domestic shareholders, and two stateowned. Given the growing fragmentation of financial markets globally, maintaining an optimal balance between foreign and domestic investment has proven to be a significant factor of stability for the banking sector. Moreover, the diverse origins of capital on the Serbian banking market attest to the benefits of the diversification of the sources of funding, which is vital for the sector’s stability.

Thanks to the timely and appropriate supervisory and regulatory measures of the NBS – particularly during the procedures for granting prior consent for bank mergers – the consolidation process has enhanced operational efficiency and improved the range of products and services on offer. Citizens and businesses today have access to more efficient and varied financial services.

The success of this process is also reflected in the banking sector’s performance indicators. Since December 2012, the total balance sheet assets of the banking sector have more than doubled, reaching RSD 6,640 billion (€55.8 billion) at the end of March 2025. Credit activity has nearly doubled, driven by growth in both household and corporate lending, while total deposits have almost tripled. Foreign currency savings increased from €8.3 billion in 2012 to €15.7 billion in May 2025, while dinar savings rose from under RSD 18 billion to RSD 193 billion – an almost elevenfold increase.

It can therefore be concluded that the consolidation of Serbia’s banking sector has had a positive impact on both citizens and the economy, with stability and trust in the sector preserved. Today, it stands as one of the key pillars of the country’s overall financial system.

Thanks to decisive and necessary reforms, and the NBS’s responsible approach, an appropriate framework has been established in recent years, enabling banks to orient their operations towards specific market segments in line with their business models. Accordingly, the Serbian market today includes banks focusing on financing SMEs, while others are steering towards full digitalisation.

The financing of SMEs has a particularly significant impact on Serbia’s economy, as this sector forms the backbone of the country’s economic activity. It employs more than two-thirds of the workforce and generates a substantial share of GDP. Providing SMEs with favourable loans tailored to their specific needs is a fundamental mechanism for encouraging sustainable economic growth. This segment of lending has recorded continuous growth, with a year-on-year increase of 10.5% in March 2025.

Properly directed credit policy – supported by guarantee funds and incentive schemes – can have a multiplier effect across various economic areas such as employment, exports, regional development and innovation.

In a period marked by heightened inflationary pressures, global crises and growing societal challenges, banks in Serbia are increasingly recognising their broader role

As part of their support to the population, banks in Serbia actively participate in housing loan programmes. The housing loan programme for young people enables significantly lower down payments for first-time buyers – allowing them to secure property with a minimum contribution of just 1% of the total property value. This significantly eases access to financing for young people. The programme also includes subsidised interest during the first six years of repayment, along with a one-year grace period, thereby easing the financial burden on young families at the start of independent living. In addition, the state guarantees the loan during the first ten years of repayment. The popularity of this programme, as shown by high demand and efficient loan approval by banks, is the best indicator of its success. I would also remind readers that, at the proposal of the

NBS, four exceptionally important laws were adopted by the Serbian National Assembly – legislation that benefits financial service users, the banking industry, and the system as a whole. These are part of our broader response to the new realities in which we live and work. As a leader in the development of digital payment services, the NBS plays a crucial role in the modernisation of the payment system, enabling users to execute transactions more quickly and securely. The collaboration between banks and the NBS further encourages the advancement of digital infrastructure, creating a stable and transparent environment for the development of financial services.

In recent years, mobile banking has emerged as one of the key drivers of the digital transformation of the financial sector. Payment service providers have recognised that mobile phones are now central to their users’ daily lives and, accordingly, view mobile devices as platforms for enabling a fully-fledged digital ecosystem of financial services. By investing in the development of sophisticated applications, they are working to ensure continuity and reliability in service provision.

This commitment to technological advancement is clearly reflected in the NBS IPS system, which has been implemented to meet stringent standards of security and reliability. Through secure authentication, integration of diverse payment channels, and improved transaction methods, the NBS IPS system provides a modern framework for the development of mobile banking services. It contributes to faster transaction processing, lower costs, enhanced data security and increased transaction volume. The growing adoption of modern payment methods is also evidenced by the fact that the number of registered users of mobile banking services reached 4.6 million at the end of 2024, compared to 1.7 million at the end of 2019. In 2024 alone, a total of 251.9 million payments were processed via mobile and online banking.

In a period marked by heightened inflationary pressures, global crises and growing societal challenges, banks in Serbia are increasingly recognising their broader role. Through support for education, financial literacy, entrepreneurship, sustainable development and environmental initiatives, the banking sector is helping to strengthen public trust in the financial system. The NBS will continue to support all those who understand the importance of stability – a matter of collective interest.