Banks in Serbia began raising banking margins in April, which will directly lead to more expensive loans. In the coming quarter, not only will borrowing become costlier for both households and businesses, but the standards for approving loans to consumers are also being tightened, despite the fact that household borrowing continued to grow rapidly in the first quarter of 2026.
Financial consultant Vladimir Vasić explained why margins on loans for businesses and individuals have been increased. “Banks raise their margins at a time when demand for loans exceeds supply. In addition, by increasing margins, banks are seeking to protect themselves against heightened business risks. Cash loans have already reached around 53 per cent of total household loans, which is not insignificant,” Vasić said.
Business risk
He underlined that the higher banking margins apply exclusively to new loans and will not affect repayments on existing borrowing. “Banks do not have the right to increase margins on existing loans during the repayment period. Loan instalments can only rise if there is a change in Euribor rates, that is, an increase in the average interest rate on euro-indexed loans,” he added.
Banking margins were first raised for business clients and later for households. It has been noted that margins have increased for small and medium-sized enterprises, while they have been reduced for large companies. According to Vasić, this was expected. “The business risk is greater for smaller firms, while large companies have reserves that smaller enterprises do not. Banking margins depend on supply and demand, and banks determine them independently,” Vasić pointed out.
What the April survey shows
The results of the April banking survey – a regular quarterly study conducted by the National Bank of Serbia (NBS) to analyse developments in the financial market – show that banks tightened the standards for approving loans to businesses between January and April for the first time in a year.
Tighter conditions were recorded for long-term dinar-denominated and foreign currency, or foreign currency-indexed, loans, while the standards for approving short-term loans of all currency structures remained unchanged. The standards were tightened for companies of all sizes, as well as for farmers.
Which loans are most in demand?
In the first three months of this year, Serbian citizens increased demand primarily for dinar cash loans and refinancing loans, as well as for foreign currency-indexed housing and consumer loans. On the other hand, the Serbian economy reduced demand for almost all types of loans at the beginning of the year, except for long-term foreign currency and foreign currency-indexed loans, for which demand increased.
(Kurir, 22.05.2026)