What are the effects of the National Bank of Serbia and the Government measures? Lending activity has remained a stable source of financing the private sector. Its structure in terms of currency, sector and purpose contributes to the even recovery of consumption and investment. The dinarisation of corporate loans is by over 9 percentage points higher compared to the precrisis period.
The share of NPLs in total loans was reduced even during the pandemic, to 3.7%, and the banking system has remained stable, liquid and well capitalised. We kept inflation low and inflation expectations anchored, while our projections show that inflation will remain within the target tolerance band both this year and in the medium run.