banking capacity

Domestic Banking Capacity Limits Industrial Financing in Serbia

The growth of Serbia's industrial sector has largely relied on foreign direct investment and external financing, with domestic credit playing a minor role. While this structure has facilitated rapid expansion, it has also highlighted a growing limitation: the domestic banking system's insufficient capacity to finance large-scale industrial projects independently. Serbia's banking sector is characterized by strong capital levels, liquidity, and overall stability. Recent years have seen a decrease in non-performing loan ratios, coupled with enhanced regulatory oversight. Banks maintain solid…