Banks in Serbia expected to tighten lending credits for corporate sector in Serbia

Banks in Serbia predict that, in the first quarter of 2025, there will be a slight tightening of the conditions for the approval of loans for the corporate sector, as shown by the results of the January survey carried out by the National Bank of Serbia (NBS). The expected changes are the result of an increased perception of risk and a reduced readiness of the banks to take it.

In the final quarter of 2024, banks continued easing the lending conditions for long-term dinar loans, but at the same time tightened the criteria for short-term dinar and FX loans.

In this period, the corporate sector increased its demand for loans, especially dinar and long-term FX loans, but in the coming months, a slight drop of the interest is expected due to reliance on alternative sources of finance.

On the other hand, the retail sector, during the end of 2024, continued seeking loans at an increased rate, and the banks eased the conditions for dinar cash loans and re-financing loans, as well as for FX-indexed housing loans.

The trend is expected to continue in the first quarter of 2025, with an additional lowering of the interest margins, fees and compensations, whereas market competition and real estate market stability might contribute to a further growth of the lending activities.

The banks, however, have already introduced certain limitations, such as the reduction of the maximum loan amount and stricter requirements regarding the collateral, which might influence the availability of financing in the coming months.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

retail loans

corporate loans