Serbia’s outstanding bank loans continued to expand at a double-digit rate in October, while the share of overdue debt declined year on year, according to the Association of Serbian Banks (UBS). Arrears represented 1.8% of total outstanding loans, down from 2.0% a year earlier, alongside a 14.9% increase in the overall credit balance.
The figures indicate that the expansion of bank lending has not been matched by an increase in the reported proportion of overdue obligations. The arrears indicator provides only a snapshot of payments already past due and does not capture borrowers’ future refinancing requirements, overall leverage or exposure to a potential economic slowdown.
Arrears Across Borrower Categories
UBS reported overdue shares of 1.1% for households, 2.3% for legal entities and 3.3% for entrepreneurs. The figures are calculated using different overdue-payment thresholds. For companies and entrepreneurs, UBS counts amounts unpaid for more than 15 days, while household arrears include payments overdue by more than 60 days.
Consequently, the percentages cannot be directly compared to determine the relative creditworthiness of each borrower category. The different measurement periods affect the reported shares. The association’s overall arrears indicator must also be distinguished from the non-performing loan ratio used in prudential banking statistics. These measures serve different purposes and can rely on different classifications and accounting definitions, so they should not be treated as interchangeable indicators of credit quality.
Outstanding Credit and Portfolio Exposure
Household bank debt reached RSD 2,211.71 billion at the end of October, while loans to companies totalled RSD 2,524.39 billion. The distribution of these balances across economic sectors, individual borrowers and repayment maturities is relevant to assessing the quality of banks’ expanding portfolios.
Other factors include the value and strength of collateral securing loans and the income available to households to meet repayment obligations.
The stability of arrears will also be assessed against potential changes in operating conditions, including higher energy costs and weaker external orders. The October figures provide information on current repayment delays, while bank-level financial statements and supervisory indicators are needed to assess the broader resilience of Serbia’s banking system.
