Serbia’s monetary aggregates, bank deposits and lending all recorded solid annual growth at the end of May 2026, with credit expanding considerably faster than the deposit base. The broadest monetary aggregate, M3, reached RSD 5,601.4 billion, representing an increase of approximately 9.8% year on year. M1 stood at RSD 2,090.7 billion, up around 8.7%, while M2 reached RSD 2,817.7 billion, an increase of approximately 10%.
All three monetary aggregates also increased compared with April, pointing to continued month-on-month nominal expansion. The aggregate figures do not, however, indicate how additional liquidity will be allocated or how much of the increase remains after accounting for price changes.
Deposits increase across dinar and foreign-currency accounts
Currency in circulation reached RSD 412.6 billion at the end of May, about 5.6% higher than a year earlier. Transferable deposits increased approximately 9.5% to RSD 1,678.1 billion. Their faster growth compared with cash in circulation indicates an increase in transaction balances held within the banking system.
Deposits held by the non-financial sector with commercial banks reached RSD 5,127.0 billion, an annual increase of 10.1%. Dinar deposits rose 10.9% to RSD 2,343.7 billion, while foreign-currency deposits increased 9.5% to RSD 2,783.3 billion. Foreign-currency deposits consequently continued to represent the larger portion of the deposit base, accounting for approximately 54.3% of total non-financial-sector deposits.
Credit growth outpaces deposits
Loans extended to Serbia’s non-financial sector reached RSD 4,250.6 billion at the end of May, approximately 17% higher than in May 2025. Dinar-denominated lending recorded the strongest increase, rising around 24.6% to RSD 1,724.9 billion. Foreign-currency and foreign-currency-indexed loans increased approximately 12.4% to RSD 2,525.7 billion.
Despite the faster expansion of dinar lending, foreign-currency and foreign-currency-indexed loans remained the majority of the total portfolio, representing approximately 59.4% of non-financial-sector loans. The figures indicate a stronger increase in domestic-currency lending, while foreign-currency exposure continues to account for a substantial part of borrowing. The National Bank of Serbia classifies loans indexed to foreign currencies within foreign-currency categories in its methodology.
Foreign-exchange reserves remain substantial
The National Bank of Serbia’s foreign-exchange reserves stood at EUR 29.88 billion at the end of May, approximately 9.1% higher than a year earlier. Commercial banks held an additional EUR 3.19 billion in foreign-exchange reserves.
The May monetary data show simultaneous growth in the money supply, bank deposits and lending. The expansion of credit will depend for its economic impact on how borrowed funds are used, the quality of bank assets and the relationship between nominal monetary growth and inflation. The monetary indicators therefore need to be assessed alongside prices, investment, consumption and real economic activity rather than considered independently.
