The National Bank of Serbia published its Trends in Lending Activity report for the third quarter of 2025, showing that bank lending to the non-monetary sector continued to accelerate amid eased credit standards and favourable borrowing conditions. Total domestic loans were up 12.8% year on year in September, excluding exchange-rate effects, while total domestic placements to the sector grew 13.2%. Household loans rose 16.1% year on year and increased by RSD 88.8 billion in the quarter, driven mainly by cash loans (RSD 49.4 billion) and housing loans (RSD 34.1 billion), with record increases in September linked to the roll-out of temporary measures offering cheaper credit for lower-income citizens and higher take-up of the state youth housing loan programme. Loans to the economy grew 9.0% year on year and increased by RSD 66.0 billion, led by liquidity and working capital lending and investment loans, with manufacturing, trade and transport firms borrowing the most. The average interest rate on newly approved dinar household loans fell to 9.2% and the euro-denominated average to 4.6%, while newly approved dinar corporate loan rates edged up to 6.6% and euro rates fell to 4.7%; dinarization of total placements reached 38.6% in September. Asset quality improved further, with NPL ratios at 1.6% for corporate loans and 2.8% for household loans, and the capital adequacy ratio at 21.0% at end-Q3. The October lending survey cited in the report indicates banks expect further easing of credit standards and rising demand for both corporate and household loans in the fourth quarter of 2025.

Original source View in tracker