The National Bank of Serbia has published its quarterly review of financial stability indicators for the first quarter of 2026, showing that the banking sector remained the core of the financial system and entered the period with solid capital and liquidity buffers, a low nonperforming loan ratio and still-strong profitability. Total financial sector assets stood at RSD 7,918 billion, of which the banking sector accounted for RSD 7,168 billion, or 90.5 percent. Key banking indicators at end-March 2026 showed regulatory capital at 19.5 percent of risk-weighted assets and core capital at 18.0 percent. The nonperforming loan ratio was 2.1 percent, return on assets was 2.5 percent and return on equity was 18.1 percent. Deposits remained above loans, with the deposits-to-loans ratio at 120.3 percent, while the average monthly liquidity ratio was 2.3 and the narrow liquidity ratio was 1.7. Foreign currency and foreign currency-indexed lending remained material, with such loans accounting for 56.1 percent of total loans, and banks' net open foreign exchange position was 1.6 percent of regulatory capital. Outside banking, insurance companies represented 5.8 percent of financial sector assets, voluntary pension funds 0.8 percent and leasing companies 2.9 percent. The broader macroprudential picture in the review also showed gross foreign exchange reserves covering 6.6 months of imports and net reserves covering 5.5 months.
National Bank of Serbia2026-06-26
National Bank of Serbia publishes first quarter 2026 financial stability review showing bank capital adequacy at 19.5 percent and nonperforming loans at 2.1 percent
The National Bank of Serbia's first quarter 2026 financial stability review shows banks remained well capitalized and liquid, with regulatory capital at 19.5 percent of risk-weighted assets and nonperforming loans at 2.1 percent. Profitability stayed strong at 2.5 percent return on assets and 18.1 percent return on equity, while deposits continued to exceed loans at 120.3 percent.