reserve requirements

An increase in the reserve requirement can make dinar loans more expensive

After the decision of the National Bank of Serbia to raise banks' reserve requirements, it can be expected that dinar loans will become more expensive, says Svetlana Popović, a professor at the University of Belgrade's Faculty of Economics. The National Bank of Serbia kept the reference interest rate at the level of 6.5 percent, but increased the rate of required reserves of banks at the National Bank of Serbia on a foreign currency basis by three percentage points each, to…