Serbian banking system stable – national bank chief
NBS chief reassures investors.
Serbia’s Central Bank chief, Jorgovanka Tabakovic, announced that the country’s banking system is stable, in a bid to dampen fears over a possible recession, the local media reported, on Feb.11.
“The banking system in Serbia is stable and the National Bank of Serbia (NBS) will do everything to keep the dinar and inflation stable as well,” Serbian news wire Tanjug reported quoting the NBS Chief
The statement was made in reaction to the recent weakening of the domestic currency. Some economists believe that the downturn in the U.S. market triggered investors to shy away from emerging markets.
Serbia has also seen four banks lose their licenses over the last year and a half leading the state to lose some EUR 800 mln. Tabakovic has hinted at the fact that irresponsible lending and risky investments are the main factors, which led to the fall of the four banks.
She also underlined that none of the 29 banks currently operational in Serbia are threatened with liquidity issues.
The NBS announced on Feb. 13 that it would not be changing the key policy rate, which will remain at 9.5 percent.
Photo by Bebauautu. Courtesy of the Cultural Heritage site of Serbia.
