Serbia’s banking sector has reduced the number of lenders while expanding substantially, with 19 banks now operating in a market whose net assets reached €62.63 billion in July 2026. The number of banks has fallen from 26 in 2019, while net banking assets increased from €34.73 billion over the same period.
Loans and Deposits Expand Alongside Consolidation
The reduction in the number of lenders has occurred alongside strong growth in banking activity. Gross loans reached €39.96 billion in July 2026, compared with €21.11 billion in 2019. Deposits increased to €48.18 billion from €25.20 billion during the same period.
Foreign-owned institutions accounted for approximately 77.3% of banking-sector assets in July, broadly maintaining their recent position in the market. The Herfindahl-Hirschman Index for banking assets stood at 1,019, compared with 800 in 2019, indicating higher concentration following a series of acquisitions and mergers.
Major Banking Transactions Reshape the Market
Several transactions have changed the structure of Serbia’s banking industry. OTP consolidated its Serbian operations, while NLB integrated Komercijalna banka. Raiffeisen absorbed RBA banka, and Eurobank Direktna was merged into what became AikBank in March 2025.
The resulting market has a larger presence of banking groups with broader retail networks and corporate-client bases, alongside access to parent-group capital and technology. Larger institutions can distribute investments in digital services, compliance, cybersecurity and risk-management systems across wider customer bases. Their larger balance sheets can also support participation in corporate, infrastructure and project-finance transactions.
Branch and Employment Numbers Decline
The consolidation has also coincided with a reduction in physical banking infrastructure and employment. The number of branches fell to 1,282 from 1,598 in 2019, while banking employment declined to approximately 21,720 from more than 23,000.
Digitalisation has contributed to the reduction as customers increasingly conduct routine banking activities outside physical branches. Despite the decline in the number of lenders, the overall banking market has expanded. Corporate credit continues to grow strongly, while deposits provide banks with substantial funding capacity. The consolidation has therefore taken place alongside increasing credit availability rather than a contraction in banking activity.
Competition Shifts Toward Larger Banking Groups
With €62.63 billion in banking assets, competition is increasingly taking place among the larger institutions operating in the Serbian market. Banks are competing for corporate clients, investment projects and higher-value retail lending as the sector moves away from a more fragmented structure toward a smaller number of larger banking groups.
