While the new rules require banks to increase their capital, the provision of transition periods enables them to adapt to the more restrictive capital and liquidity requirements. Hence, I am not afraid that the implementation of Basel III might significantly impair the lending capacity of banks or hamper economic recovery.
However, it was in Serbia too that the NPL ratio recorded the smallest increase since the beginning of the crisis. Satisfactory stability of our banking system is also confirmed by the capital adequacy ratio of over 16% and by the full coverage of NPLs by the loan loss provisions.