Serbia’s banking sector has expanded its balance sheet while maintaining strong capitalisation, high liquidity and low non-performing loan levels, positioning domestic lenders to support the country’s infrastructure and private-sector investment pipeline.
Total banking-sector assets reached €63.8 billion in August 2026, up from €59.7 billion at the end of 2025. Gross loans increased to €40.4 billion, while deposits approached €49 billion.
Capital Adequacy and Asset Quality Remain Strong
The sector’s capital adequacy ratio stood at approximately 20.1%, while return on equity reached 18.1%. Asset quality has also improved substantially, with the gross non-performing loan (NPL) ratio declining to around 2%, compared with more than 20% a decade earlier.
Deposits accounted for 76.8% of total bank funding, reducing lenders’ dependence on wholesale international markets. Household deposits represented 51.3% of total deposits, while corporate deposits accounted for 35.6%.
High Liquidity Supports Domestic Lending
Serbian banks also maintained substantial liquidity buffers. The liquidity coverage ratio stood at approximately 199%, nearly twice the regulatory minimum, while the ratio of loans to deposits in the non-financial sector was 84.24%.
These balance-sheet indicators provide domestic lenders with capacity to finance projects across infrastructure, industry, real estate and renewable energy, supporting Serbia’s next investment cycle.
Project Bankability Determines Access to Financing
For project developers, the availability of domestic banking liquidity is less likely to be the principal financing constraint than the characteristics of individual investments. Project quality, predictable cash flows, permitting requirements, construction risks and the creditworthiness of sponsors and off-takers will remain important considerations in lending decisions. The extent to which the banking sector’s financial capacity translates into productive investment will depend on the bankability of projects seeking financing.
