Domestic lending in Serbia rose 15.9% year on year in August 2026, supported by double-digit growth in both household and corporate borrowing, with investment loans accounting for an increasing share of business financing.
Household loans expanded by 19.6%, while lending to companies increased by 11.1%. Within the corporate portfolio, investment loans grew by 15.1%, outpacing the 11.1% increase in loans for liquidity and working capital.
Corporate Borrowing and Investment Loan Rates
Interest rates remain above the exceptionally low levels recorded before the inflation shock, although borrowing conditions continue to support credit expansion. Rates on new dinar-denominated corporate loans stood at 7.7%, while euro-indexed corporate loans averaged 5.5%.
The increase in investment lending, alongside Serbia’s extensive infrastructure programme, provides a potential channel for financing to flow from the banking sector into the wider economy.
NBS Introduces Additional Capital Safeguard
The pace of credit expansion is also drawing regulatory attention. The National Bank of Serbia (NBS) has decided to introduce a 0.5% countercyclical capital buffer from December 2026, adding a safeguard against potential risks associated with rapid lending growth.
The current combination of fast credit expansion and strong asset quality provides favourable conditions for financing activity. Banks have liquidity and an appetite to support new investment, while corporate borrowers have access to funding for projects and working-capital requirements. For regulators, the challenge is to ensure that lending growth does not come at the expense of credit assessment and underwriting standards.
