November 18 (SeeNews) - The ratio of non-performing loans (NPLs) to total loans in Serbia's banking sector stood at 3.55% at the end of September, central bank governor Jorgovanka Tabakovic said on Thursday.
"The preserved quality of banks' assets is best evidenced by high capital adequacy, as well as the share of non-performing loans of total loans, which is below the pre-crisis level and in September amounted to 3.55%," Tabakovic said in remarks to the presentation of NBS November 2021 inflation report published on the bank's website.
Earlier this month, Ognjen Popovic, an advisor to finance minister Sinisa Mali, said the ratio of NPLs to total loans in Serbia's banking sector fell to 3.5% at the end of August, backed by auctions for their sale and regulatory reforms.
"A drastic decline in NPLs has been achieved as a result of a comprehensive change in the legal framework, as well as the strengthening of institutions and the adoption of bylaws, which have enabled banks and other financial institutions to address this issue," Popovic said back then.
Serbia's central bank started regular monitoring of NPLs in 2008. After a temporary decrease in the second half of 2012, NPL ratio rose again in 2013 and continued to grow in 2014, reaching record-high 22.5% in 2015.