Serbia’s total outstanding bank loans to households and businesses reached RSD 4,840.69 billion (approximately EUR 41.2 billion) at the end of October, representing a 14.9% year-on-year increase, according to the Association of Serbian Banks (UBS).
Household borrowing recorded the strongest growth among the main borrower categories, with outstanding loans increasing by 18.1% annually. The figures indicate continued expansion of bank lending across the Serbian economy, with households accounting for a substantial share of total credit exposure.
Household and Corporate Borrowing
Households held RSD 2,211.71 billion in outstanding loans, while corporate borrowers accounted for RSD 2,524.39 billion. The remaining balance was attributable to entrepreneurs.
The 18.1% annual increase in household lending exceeded the growth rate of the overall loan portfolio, highlighting the stronger expansion of credit extended to individuals compared with the aggregate banking market.
The reported figures represent the stock of outstanding loans at the end of the reporting period, rather than the volume of newly issued loans during October. Changes in outstanding balances also incorporate repayments, refinancing and exchange-rate movements, meaning the figures do not directly establish the amount of new financing provided to the economy.
Monthly Credit Expansion and Repayment Indicators
UBS recorded total outstanding loans of RSD 4,817.54 billion at the end of September. By the end of October, the balance had increased by RSD 23.15 billion, indicating a further monthly expansion of the banking sector’s loan portfolio.
The monthly increase was relatively small compared with the overall outstanding credit balance, distinguishing the latest month-on-month movement from the 14.9% annual growth rate. Repayment indicators also showed an improvement in the UBS measure of overdue loans. Overall arrears represented 1.8% of outstanding loan debt, down from 2.0% a year earlier.
This indicator should not be treated as equivalent to the banking system’s non-performing loan (NPL) ratio, as the two measures do not necessarily cover identical categories of credit exposure. For banks and regulators, continued lending growth places emphasis on monitoring borrowers’ income levels, loan maturities and debt-servicing capacity, alongside developments in aggregate credit volumes.
