In a published address to the Annual Assembly of the Association of Serbian Banks, National Bank of Serbia Governor Jorgovanka Tabakovic reviewed current financial system conditions and highlighted a legislative package adopted by Parliament that strengthens bank supervision, resolution arrangements and consumer protection. She also outlined the next operational milestones following Serbia’s admission to the Single Euro Payments Area (SEPA). The speech pointed to easing inflationary pressures and continued banking system strength, including inflation at 3.8% and core inflation at 4.6%, a non-performing loan ratio of 2.3%, and system-wide indicators of capital and liquidity (capital adequacy ratio 21%, liquid asset coverage ratio 190%, net stable funding ratio 178%). On the regulatory side, amendments to the Law on Banks were presented as completing and aligning the framework for bank operations, supervision and restructuring with European Union rules, including a Bank Restructuring Fund to be managed by the National Bank of Serbia, legal recognition of key functions and key function holders, tighter focus on internal controls, additional board suitability conditions relating to time commitment, a more specified supervisory assessment process, and changes to money laundering and terrorist financing risk management. The Financial Services Consumer Protection Act was described as broader than interest rate caps and as introducing conduct requirements across advertising, pre-contractual information, product design and contract performance, including “responsible borrowing”, rules on relief for borrowers in difficulty, an obligation to offer options to sell the property or transfer ownership to the bank after termination of a housing loan agreement and before sale of the property, regulation of advisory services and conflict-of-interest safeguards, and the use of a “covert control” procedure to monitor implementation. On payments integration, the Governor noted Serbia’s admission to SEPA on 22 May 2025 and cited the European Payments Council calendar under which Serbian payment service providers can submit documentation to join SEPA payment schemes from November 2025, with May 2026 envisaged as the start date for payments under those schemes. The National Bank of Serbia is working with the European Central Bank on a model to connect Serbia’s IPS NBS instant payments system to the Eurosystem’s TIPS platform, aiming for low implementation costs and minimal changes for domestic providers.
National Bank of Serbia 2025-06-09
National Bank of Serbia sets out bank law reforms and SEPA payments rollout planned for May 2026
National Bank of Serbia Governor Jorgovanka Tabakovic addressed the Annual Assembly of the Association of Serbian Banks, highlighting a legislative package enhancing bank supervision, resolution, and consumer protection. She noted Serbia's admission to the Single Euro Payments Area (SEPA) and outlined operational milestones, including integration with the Eurosystem’s TIPS platform. Amendments to the Law on Banks align with EU rules, introducing a Bank Restructuring Fund, enhanced internal controls, and comprehensive consumer protection.