The National Bank of Serbia has put in place a process of continuous monitoring of banks’ activities related to climate-related risks, using supervisory forms to track how climate risks are being incorporated into operations and risk management. The latest review found further progress among banks that had already begun integrating climate risks, alongside an increase in the number of banks embedding climate risks in some areas. The monitoring builds on an initial set of forms whose analysis was published on 12 July 2024, followed by an adapted version submitted by banks in August 2024. Progress was assessed against banks’ earlier responses from December 2023, with reported improvements including new credit lines to finance green loans, creation of dedicated or additional organisational units focused on climate risks, updated ESG strategies and additional internal acts detailing climate-risk treatment, and the inclusion of ESG statements in loan documentation. In some areas covered by the forms, the increase in banks integrating climate risks was attributed to changes by four banks. The National Bank of Serbia will continue monitoring climate-risk practices in the banking sector and will determine further supervisory steps, taking into account the characteristics of climate risks and local market specifics.
National Bank of Serbia 2025-01-21
National Bank of Serbia establishes continuous monitoring of banks’ climate-related risk practices
The National Bank of Serbia is continuously monitoring banks' integration of climate-related risks into operations and risk management. Recent reviews indicate progress, with more banks incorporating climate risks, introducing green loan credit lines, and updating ESG strategies. The bank will persist in its oversight and adapt supervisory measures based on climate risk characteristics and local market specifics.