bank margins

National Bank of Serbia plans margin cuts to help low-income borrowers, expert urges responsible lending

The National Bank of Serbia is preparing measures to reduce bank margins, primarily aimed at helping low-income groups, says financial consultant Vladimir Vasić. He emphasizes the need to strengthen competition among banks. Vasić explains that Serbia’s banking market is heavily bank-centric, with about 90-92% of circulating money held in banks. Due to limited alternative investment options, demand for bank credit is high, allowing banks to set higher prices (interest rates). This lack of competition drives up borrowing costs. He notes…