Serbian banks are preparing to apply tighter standards to corporate borrowers in the third quarter of 2026, marking a shift after several years of strong expansion in business lending. The latest banking-sector survey shows that lenders expect to tighten corporate credit standards further in Q3 2026. The change comes while companies continue to borrow actively and the banking system maintains strong liquidity and exceptionally low levels of problem loans.
Corporate credit growth has remained in double digits, driven by demand from investment, real estate, construction, trade and working capital. The expected tightening therefore follows a period of rapid lending expansion rather than financial-sector distress.
Higher borrowing costs influence corporate financing
Interest rates remain an important factor for companies seeking additional financing. New corporate dinar-denominated loans are considerably more expensive than comparable euro-indexed financing. Businesses are also dealing with rising labour and operating costs, increasing the financial burden associated with new borrowing and debt servicing. Against this backdrop, banks are becoming more selective in determining which companies can take on additional leverage and under what conditions.
Borrowers face different financing conditions
The effect of tighter standards is expected to vary according to the financial strength and business model of individual companies. Large exporters with predictable cash flows, established collateral and strong sponsors are positioned to maintain relatively easy access to bank financing.
Companies carrying high leverage, recording weak profitability or pursuing speculative development projects may instead encounter stricter covenants, collateral requirements and loan pricing. The resulting credit allocation places greater emphasis on borrowers’ capacity to support additional debt through their underlying business performance.
Alternative funding channels expand
The change in bank lending standards comes as Serbia’s corporate financing market is developing additional sources of capital. Green bonds, development-finance programmes and lending facilities supported by international financial institutions are expanding, while larger companies are gaining greater access to international funding.
Serbian companies therefore continue to have financing options beyond conventional domestic bank loans. The banking-sector shift is instead creating a more differentiated lending environment, with access to capital increasingly dependent on the characteristics of individual borrowers and projects. For companies seeking financing in late 2026, the key consideration will increasingly be whether their projects meet banks’ requirements for additional lending, rather than whether liquidity is available within Serbia’s banking system.
