The National Bank of Serbia published its Trends in lending activity report for the second quarter of 2025, showing continued double-digit growth in domestic lending to the non-monetary sector, supported by lower interest rates and generally relaxed lending standards. Excluding exchange-rate effects, total domestic loans grew 10.8% year-on-year in June, driven by households (14.0%) and, to a lesser extent, corporates (7.1%). Household loans rose RSD 90.9 billion quarter-on-quarter, led by cash loans (RSD 46.8 billion) and housing loans (RSD 32.2 billion, with around two-fifths linked to the state housing loan programme for young people), while corporate loans increased by RSD 65.6 billion on the back of liquidity and working capital loans and investment loans. Weighted average interest rates on newly granted dinar loans fell to 9.7% for households and 6.5% for corporates, and euro and euro-indexed rates fell to 4.9% for both; dinarisation of total placements rose to 38.5% in June. Asset quality indicators remained low (NPLs of 1.7% for corporate loans and 3.0% for household loans in June), and the capital adequacy ratio stood at 21.3%; banks also expected further easing of standards and stronger loan demand in the third quarter based on the National Bank of Serbia’s July lending survey.
National Bank of Serbia 2025-08-15
National Bank of Serbia publishes Q2 2025 lending trends showing 10.8% annual loan growth and lower borrowing costs
The National Bank of Serbia's Q2 2025 lending report shows continued double-digit growth in domestic lending to the non-monetary sector, driven by lower interest rates and relaxed lending standards. Total domestic loans grew 10.8% year-on-year in June, with household loans increasing by 14.0% and corporate loans by 7.1%. Asset quality remained strong with low non-performing loans, and banks anticipate further easing of standards and increased loan demand in Q3.