NBS says will not allow Serbian financial system to be jeopardised

BELGRADE - The National Bank of Serbia (NBS) said on Thursday it had all the necessary instruments to ensure the stability and security of the domestic financial system and that it would not allow it to be jeopardised as a result of the current situation with the Serbian oil company NIS, which is under US sanctions due to its Russian-majority ownership.

"Regarding the sensationalist reports by certain media, which falsely and irresponsibly claim, in connection with the current situation involving the NIS company, that the NBS is 'heading for a financial collapse', the NBS, acting in the best interest of the general public, fully rejects such claims and emphasises that it will not allow the domestic financial system to be jeopardised. It is closely monitoring the situation and acting in accordance with its mandate to preserve the stability of the financial system of the Republic of Serbia," the central bank said in a statement.

"Furthermore, we emphasise that any incitement of panic with such headlines is in direct contravention of the state’s interests and does not contribute to calming the situation but rather introduces additional uncertainty among citizens.

All government institutions are working together to resolve this exceptionally important issue for our country. The NBS is in constant coordination with domestic and international partners and possesses all the instruments required to ensure the continuity and security of the domestic financial system’s functioning. In recent days, the NBS has actively participated in all segments of the domestic financial market to maintain the necessary stability.

Invoking such speculation to foster uncertainty and erode trust in the stability of the domestic financial system is therefore entirely unjustified. All our measures are aimed at protecting citizens, the economy, and market stability. Serbia’s banking sector is liquid, well-capitalised, and prepared to function smoothly under all circumstances.

The NBS will continue to inform the public in a timely manner about its actions and will not allow - regardless of external pressures and irresponsible speculation - payment operations, the stability of the financial system, or financial flows to be jeopardised.

At the same time, the NBS expects all participants in public life, especially the media, to report on this matter truthfully, carefully, and responsibly, in the best interest of our country and all its citizens," the NBS also said.