Outstanding bank loans to households and businesses in Serbia reached RSD 4,840.69 billion, equivalent to 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 fastest growth among the main customer groups, with loans rising 18.1% year on year to RSD 2,211.71 billion. Companies accounted for RSD 2,524.39 billion of outstanding debt, while the remaining balance belonged to entrepreneurs.
The figures measure the total stock of outstanding loans at the end of the reporting period, rather than new lending issued during October. Changes in the balance also reflect repayments, refinancing and exchange-rate movements, meaning the annual increase does not represent the volume of fresh financing provided to the economy.
Monthly Lending Growth and Credit Composition
The total loan balance increased from RSD 4,817.54 billion at the end of September to RSD 4,840.69 billion in October, a monthly rise of RSD 23.15 billion.
Although the annual expansion reached 14.9%, the monthly increase was considerably smaller in relation to the overall loan portfolio. The distinction is relevant when assessing the pace of lending activity and the amount of additional credit entering the banking system. Household loans grew faster than the overall credit stock, making individuals the strongest source of expansion in bank lending. Corporate borrowing remained the largest component by outstanding value, at RSD 2,524.39 billion.
Loan Repayment Indicators
The UBS data also showed a decline in the share of overdue loans. Arrears represented 1.8% of total loan debt, compared with 2.0% a year earlier.
This indicator is separate from the banking system’s non-performing loan ratio and should not be treated as an equivalent measure of impaired credit.
As lending continues to expand, banks and regulators monitor borrowers’ income levels, repayment periods and debt-service capacity. The composition and purpose of new borrowing also remain relevant to assessing whether credit supports business investment and productivity alongside household consumption and residential property demand.
