Serbian banks sharply increased lending to companies in the second quarter of 2026, with stronger investment borrowing and increased activity among SMEs pointing to a broader expansion in corporate finance. Banks issued RSD 436.4 billion ($4.3 billion) in new corporate loans between April and June, 27.2% more than a year earlier, according to the National Bank of Serbia. First-half lending reached RSD 725.5 billion, up 14.4% year on year.
Outstanding corporate loans were 11.7% higher year on year in June, with the stock increasing by RSD 67.5 billion during Q2. Corporate enterprises accounted for the entire increase, with borrowing rising RSD 89.8 billion.
Investment Lending Gains Ground
Liquidity and working-capital loans increased RSD 39.9 billion during the quarter, while investment loans rose RSD 38.4 billion.
Investment lending grew 14.6% year on year, compared with 12.5% for liquidity and working-capital loans. Investment loans accounted for around 28% of new corporate lending in Q2, compared with about 21% in Q1. Working-capital loans still represented 48.3% of outstanding corporate borrowing, against 43.2% for investment loans.
SMEs Account for Most New Lending
Micro, small and medium-sized enterprises generated almost two-thirds of the increase in corporate lending in Q2, taking their share of total corporate loans to 60.7% in June. SME borrowing increased 12.6% year on year, while smaller businesses received around three-fifths of newly approved investment loans. The largest increases in borrowing were recorded in real estate, construction and trade, while outstanding loans declined in transport and energy.
Borrowing Rises Despite Tighter Standards
The NBS second-quarter lending survey showed that banks tightened corporate lending standards, even as demand for both dinar and foreign-currency-linked loans increased. The weighted average rate on newly approved dinar corporate loans stood at 7.1% in June, including 6.8% for working-capital loans, while euro and euro-indexed loans averaged 5.1%. The NBS has maintained its benchmark interest rate at 5.75%.
Credit Growth Comes as Construction Expands
The increase in corporate borrowing coincides with strong construction activity driven by infrastructure projects, Expo 2027, residential development and commercial property. Corporate non-performing loans remain at historically low levels, while Serbia’s banking sector remains profitable and liquid.
The allocation of new credit will determine its longer-term economic impact. Greater financing for manufacturing, technology, automation and export capacity could strengthen productive capacity, while continued concentration in real estate, construction and trade would reinforce sectors already benefiting from strong domestic investment and demand.
