Banks in Serbia successful at liquidity test

The biggest banks in Serbia are capable of responding to outstanding risks since they have sufficient capital above proscribed minimum of 12% which Basel standards define, the stress test results which the National Bank of Serbia conducted, show.

Stress-test was carried out in 14 biggest banks in Serbia which cover 88% market. Results show that we should not have unpleasant surprises as during previous years when a few domestic banks shut down. Capital decrease was also caused by bad loans which increased to that extent over the years that almost every fourth loan in business is almost non-payable.

Secretary of the Association of banks of Serbia, Veroljub Dugalic, says banks conducted reprograming and refunding, sale of these placements and in some cases, write off as well. It was difficult to foresee in the long run if anyone was damaged when crises broke out in 2008 – Dugalic added.