Serbian bank lending accelerated to 16.6% year on year in June 2026, with household credit growing 20%, as authorities intervened in consumer and mortgage pricing. Banking-system data show faster borrowing alongside concerns about the effects of pricing measures on market forces and credit quality.
Capital adequacy stood at 19.5% in the first quarter of 2026, above the central bank’s 8% minimum. Banks’ return on assets was 2.5%, while the non-performing loan ratio fell to a record 2.1%. High capital and low non-performing loans left lenders well placed to expand credit as the system entered the second half of 2026.
Household lending grew 20% year on year in June, while business lending increased 11.7%. Credit standards eased as growth accelerated. Bank financing remained dominant because non-bank financial institutions and alternative capital-market channels were still underdeveloped.
Authorities used interest-rate caps and supervisory expectations for lower-cost consumer and mortgage products aimed at selected groups. The European Commission warned that measures affecting consumer and mortgage pricing may interfere with market forces and create moral hazard. Rapid household borrowing raised policy questions, with banks facing the challenge of preserving underwriting quality amid political pressure for cheaper credit and the fastest loan growth in years.
