{
  "title": "Republic of Serbia: Financial Sector Assessment Program Update: Technical Note on Banking Sector Soundness and Stress Testing",
  "publication": "IMF Staff Country Reports, May 27, 2010",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911",
  "overlayPath": "/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/index.md",
  "summary": "This Technical Note reviews banking sector soundness and stress testing in Serbia. Serbia’s banking sector is well capitalized and liquid, but the corporate sector’s weak performance is a source of concern because of its adverse impact on nonperforming loans.",
  "sections": [
    {
      "heading": "Summary overview",
      "content": "- This Technical Note reviews banking sector soundness and stress testing in Serbia.\n- Serbia’s banking sector is well capitalized and liquid.\n- The corporate sector’s weak performance is a source of concern because of its adverse impact on nonperforming loans.\n- Stress tests indicate that banks are quite resilient to further adverse shocks, but they remain vulnerable to credit risk.\n- The results highlight that the banking system is most vulnerable to further exchange rate depreciation, through foreign currency induced credit risk, and a prolonged economic downturn."
    },
    {
      "heading": "Major findings",
      "content": "- Banking sector condition: well capitalized and liquid.\n- Credit risk: elevated, driven by corporate sector weakness and adverse impact on nonperforming loans.\n- Resilience: banks are quite resilient to further adverse shocks according to stress testing.\n- Key vulnerability channels:\n  - Exchange rate depreciation leading to foreign currency induced credit risk.\n  - Prolonged economic downturn increasing nonperforming loans."
    },
    {
      "heading": "Stress testing results (high-level)",
      "content": "- Stress tests indicate overall resilience of banks to further adverse shocks.\n- Remaining vulnerability is concentrated in credit risk, notably linked to:\n  - foreign currency exposure,\n  - corporate sector performance,\n  - prolonged economic downturn."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: Banking, Commercial banks, Corporate sector, Economic sectors, Financial institutions, Financial sector policy and analysis, Loans, Nonperforming loans, Stress testing\n- Keywords: asset quality, balance sheet, bank assets, bank concentration, bank ownership, banking system, banks' assets, Commercial banks, Corporate sector, coverage ratio, CR, credit growth, Eastern Europe, exchange rate, Global, holdings of T-bills, ISCR, Loans, market share, Nonperforming loans, operating income, parent bank, return on equity, Southern Europe, Stress testing\n\n---\n\n Content in this bundle\n\n- Cr10149\n  - Cr10149 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Cr10149 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/bundle-manifest.json)",
    "Published: May 27, 2010",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781455205653.002",
    "This Technical Note reviews banking sector soundness and stress testing in Serbia.",
    "Serbia’s banking sector is well capitalized and liquid.",
    "The corporate sector’s weak performance is a source of concern because of its adverse impact on nonperforming loans.",
    "Stress tests indicate that banks are quite resilient to further adverse shocks, but they remain vulnerable to credit risk.",
    "The results highlight that the banking system is most vulnerable to further exchange rate depreciation, through foreign currency induced credit risk, and a prolonged economic downturn.",
    "Credit risk: elevated, driven by corporate sector weakness and adverse impact on nonperforming loans.",
    "Resilience: banks are quite resilient to further adverse shocks according to stress testing.",
    "Key vulnerability channels:",
    "Stress tests indicate overall resilience of banks to further adverse shocks.",
    "Remaining vulnerability is concentrated in credit risk, notably linked to:",
    "Subjects: Banking, Commercial banks, Corporate sector, Economic sectors, Financial institutions, Financial sector policy and analysis, Loans, Nonperforming loans, Stress testing",
    "Keywords: asset quality, balance sheet, bank assets, bank concentration, bank ownership, banking system, banks' assets, Commercial banks, Corporate sector, coverage ratio, CR, credit growth, Eastern Europe, exchange rate, Global, holdings of T-bills, ISCR, Loans, market share, Nonperforming loans, operating income, parent bank, return on equity, Southern Europe, Stress testing",
    "**Cr10149**"
  ],
  "related": [
    {
      "title": "Cr10149",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10149.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10149.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10149.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/index.md",
    "json": "/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/index.json",
    "bundleManifest": "/en/publications/cr/issues/2016/12/31/republic-of-serbia-financial-sector-assessment-program-update-technical-note-on-banking-23911/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-13T10:08:28.443Z"
}