By consistent implementation of monetary policy and full coordination with fiscal policy, the National Bank of Serbia significantly contributed to the country’s solid economic performance, which strengthened the basis for sustainable growth. We are therefore able to talk today about the lowest risk premium, which in July, for the first time since records are available for our country, fell below 60 bp.
Holding securities under HTM provides cushion for banks from valuation changes. However, holding in HTM book is subjected to a ceiling. AFS and HFT categories together form the trading book of banks. Banks are permitted to decide on the extent of holdings under AFS and HFT based on their trading strategy, risk appetite, capital position, etc.