EIB: Serbia has one of most robust banking sectors in CESEE region

LUXEMBOURG - Serbia is among the central, eastern and southeast European states with particularly robust and highly profitable banking sectors, according to an European Investment Bank (EIB) CESEE Bank Lending Survey for the first half of 2026.

"The banking sector in Central, Eastern and South-Eastern Europe (CESEE) has strong growth potential," the survey says, noting that credit demand from businesses and households in the region is "robust, supported mainly by consumer and housing loans."

"At the same time, credit supply in CESEE is projected to soften slightly, reflecting a reduced readiness to extend loans to large companies.

International banks plan further expansion: three-quarters of cross-border banking groups surveyed intend to expand their operations in the region with none of them anticipating a reduction of their operations," it says.

The profitability of banks in the CESEE region is strong relative to their overall operations, with particularly robust results in Bosnia and Herzegovina, Bulgaria, Czechia, Hungary, North Macedonia and Serbia, it notes.

"These trends are encouraging for investment and economic development in the region, and a sign of the growth potential that CESEE represents for Europe," says EIB Vice-President Marek Mora.

"Most banks surveyed regard the market potential in CESEE as high, particularly in countries such as Czechia, Romania and Slovakia. The survey shows medium expectations regarding markets in the Western Balkans.

Access to funding in CESEE for cross-border banking groups and their subsidiaries has been strong over the past six months. The trend has been supported by rising retail and corporate deposits and access to funding from international financial institutions (IFIs), such as the EIB, and wholesale debt issuance.

Furthermore, credit quality has improved over the past six months, with fewer non-performing loans reported. Despite these positive developments, banks remain cautious about the next six months, anticipating a deterioration in credit quality across corporate and retail portfolios. However, similar negative expectations in recent years have often failed to materialise," the EIB said in a statement.

"These results highlight very positive credit trends for the banks operating in the CESEE area, which are benefiting from the strong performance of the global and European banking sectors,” says Matteo Ferrazzi, principal advisor at the EIB's Economics Department.