Serbia Economic and FDI Outlook
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25
National Bank of Serbia
Conservative Framework Contributed to the
Banking Sector Resilience to Shocks
High banking sector capitalisation as a result
of strong prudential measures
Chart 35 Capitalization of the Serbian banking sector
(%)
Serbian banking sector is highly liquid
Chart 36 Liquidity indicators of the Serbian banking sector
21.38
3.00
19.67
2.75
20
20
19.62
2.50
2.25
1551
2.00
1.75
1.50
10
1.25
1.00
0.75
5
0.50
0.25
0
0.00
2015 2016 2017
2018 2019 2020
2021
2022 2023
2020
■Total capital ratio
Source: NBS
Tier 1 to RWA
■CET1 ratio
2021
2022
Liqudity indicator (reg. min 1.0)
Source: NBS
Narrow liquidity indicator (reg. min 0.7)
LCR (reg. min 100%)
2023
2024
(Feb)
2.70
202%
1.82
•
.
Banks possess significant capital reserves, which enable
them to successfully deal with credit risk even in the case of
worst-case stress scenario.
In addition to the high level, the capitalization of the banking
sector is characterized by a good structure, with CET1
around 92% of total capital.
• The high solvency of the banking sector is also indicated by
the leverage ratio, introduced in regulatory framework of the
Republic of Serbia with Basel III implementation, which at
the end of December 2023 amounted to 10.3%.
• Liquidity ratios are constantly at levels significantly higher
than the regulatory minimum.
.
• Liquid assets account for around 45.4% of the total assets
of the banking sector in February 2024.
• The loan to deposit ratio that at the end of February 2024
amounted 74.7%, indicates stability of funding and in
general the liquidity of the banking sector.
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