Thirteen years of Jorgovanka Tabaković’s governorship – continuity and consistency in the fulfilment of objectives and modernisation of services to the benefit of citizens, businesses and government

“The business environment and economic landscape of Serbia have been considerably improved over the past thirteen years. We secured inflation comparable to that of other Central European countries, investment rating, record high FX reserves, relative stability of the exchange rate of the dinar against the euro, significantly lower interest rates, drastically higher employment and better living standard indicators. This is only a small portion of the overall result thanks to the work and cooperation of all economic agents in Serbia – citizens, businesses, the President of the Republic of Serbia, the government and the NBS. System stability was at the core of every decision we made and it will remain our guide in the period to come! Everyone has benefited directly from stability to which we have been contributing for thirteen years – citizens and businesses, exporters and importers, investors and consumers. Our system is measured by stability indicators, as well as by the degree of trust our citizens have in our institutions, and we will live up to this trust, manifested in the record high savings in the coming period as well, all to the benefit of our citizens”, said Governor Jorgovanka Tabaković.

RESULTS:

1. In October 2024, Serbia was awarded investment grade credit rating, which is the first time a non-EU, SEE country has received this rating. One of the strategic goals has thus been achieved, though international investors emphasise that they have considered Serbia an investment grade country for quite some time already.
2. We inherited high and volatile inflation, but we lowered it in less than a year by as much as 10 pp, from 12.2% at end-2012 to 2.2% in October 2013.
3. During the period from 2009 to 2013, average inflation in Serbia was 4.9 pp higher than in the countries of Central Europe. Since the end of 2013, however, the average inflation in Serbia has been almost the same as that in Central European countries.
4. The dinar strengthened nominally against the euro by 1.2%, and the NBS net bought EUR 10.9 bn in the FX market amid prevailing appreciation pressures on the domestic currency. This was the most significant factor of FX reserves growth.
5. Gross FX reserves almost tripled, to EUR 28.3 bn at end-July 2025, up by EUR 18.2 bn, or 2.8 times higher than in the same month of 2012 despite pronounced global turbulences. Net FX reserves increased more than four times in the same period (from EUR 5.5 bn to EUR 24.1 bn).
6. We also raised considerably the quantity, value and share of gold in FX reserves relative to August 2012:
   - The quantity of gold more than tripled (from 14.8 tonnes to the record 50.8 tonnes);
   - The value value of gold reserves rose almost eight times (from EUR 0.6 bn to EUR 4.7 bn);
   - The share of gold in reserves went up from 6.2% to around 17%.
7. In the 2013–2024 period, EUR 38 bn worth of FDIs flowed into Serbia with the record high inflow of EUR 5.2 bn in 2024.
8. Household savings posted record high levels – dinar savings exceeded RSD 200 bn, and FX savings reached almost EUR 16 bn. While FX savings rose by 90%, in the past thirteen years, dinar savings increased by as much as eleven times.
9. Interest rates on new dinar loans to corporates and households are down by 10 pp and 11 pp from the end of 2012, despite the monetary policy tightening in the current global inflationary wave.
10. The share of NPLs in total banking sector loans went down to 2.3%, from the inherited around 20% (a fifth of banking sector assets).
11. The NBS was one of the pioneers who developed the most up-to-date instant payments system – NBS IPS system, which was launched in October 2018.

In the past thirteen years:

• The number of issued DinaCard cards tripled.
• Interbank fees were lowered five to six times from the average around 1% to 0.2% of the transaction amount.
• Merchant fees were halved – from the average over 2% to around 1% of the transaction amount.
• The number of e-banking transactions doubled, from 72.8 mn to 142.5 mn.
• The number of m-banking transactions increased from a half a million to 109.3 mn.
• The number of payment card transactions at domestic merchants’ brick-and-mortar POS went up from 81.5 mn to 628.8 mn.
• The lowest buying/the highest selling rate that authorised exchange dealers and the public postal operator can apply when buying or selling foreign cash - euros, is limited to ±1.25% in relation to the official middle exchange rate of the dinar against the euro, which is valid on that day, and the exchange commission is capped at 1%.
• The long-standing issue of charging for travel arrangements at banks’ selling rates for foreign exchange or foreign cash has also been resolved. From the end of July 2019, when stating the price and charging for travel arrangements abroad, the official middle exchange rate of the dinar is applied.
• At the ceremonial event marking Sretenje – Statehood Day, held at the Palace of Serbia on 16 February 2025, the NBS was awarded the Order for Special Merits to the Republic of Serbia and its citizens for preserving and strengthening the stability of the financial system, on the occasion of its 140th anniversary. This Order of Merit was presented to Governor Jorgovanka Tabaković by the President of the Republic of Serbia, Aleksandar Vučić.
• In January 2020, the London-based monthly magazine “The Banker” declared Governor Jorgovanka Tabaković the best governor globally and in Europe. “Though it is personal, I take this award as a recognition of changes in Serbia, on which I have been working since the second half of 2012 together with my associates, and as a recognition of changes that the Serbian President has been working on together with his associates. The award itself belongs most to Serbia and its citizens, noted Governor Tabaković on the occasion.
• During the pandemic, the City of Belgrade granted to the NBS the “Hero of Belgrade” award, for its flawless functioning even throughout the covid pandemic which enabled it to preserve the financial stability in Serbia in the most challenging period. “The heroes are all those who, behind each decision and procedure, see the people for the sake of whom we exist. We have worked just as our payment system has worked – incessantly, just as our hospitals, pharmacies, grocery stores, utility workers, police officers and soldiers have worked, because our motto is: with the people, for the people, for Serbia, whose mirror we are”, stated the Governor.

HISTORICAL SUCCESS OF SERBIA – INVESTMENT GRADE CREDIT RATING

• In October 2024, Serbia was awarded investment grade credit rating. This is the first time a non-EU SEE country has received this rating. One of the strategic goals has thus been achieved, though this recognition would have probably come even sooner had it not been for the shocks in the international environment. 
• Standard & Poor’s has been stating for a number of years that the NBS earned the credibility and proved its operational independence with the continuity of its results. They also noted that the exchange rate regime facilitates the economy’s successful adjustment to international developments, as well as that the NBS interventions in the FX market contribute to the preservation of price and financial stability, to the increase in the country’s FX reserves to a record high level, including a significant lengthening of the maturity of dinar government securities.

HIGH INFLATION RESOLVED

Timely and adequate monetary policy measures, coupled with the provided and preserved relative stability of the exchange rate of the dinar against the euro, cut the inherited high and volatile inflation in Serbia by 10 pp in less than a year – from 12.2% at end-2012 to 2.2% in October 2013.

• In the next eight years, up until the escalation of global inflationary pressures, inflation moved around the level of 2.0% on average. At this level, it was comparable to the average inflation in the EU.
• As of 2017 we lowered inflation target from 4% to 3% with unaltered target tolerance band of ±1.5 pp. The decision to lower the target made jointly with the Serbian government confirms our intention to preserve low inflation in the medium run.  

Since mid-2021, global cost-push pressures have intensified, which, through the channel of imported inflation, has contributed to higher prices in the domestic market. In such conditions we were making decisions which ensured the downward trajectory of inflation, without slowing down economic growth. As a result, inflation has been on the downward path since April 2023, having returned within the target tolerance band (3±1.5%) in May 2024.

RISING LIVING STANDARD

• The living standard improved on the back of strong economic growth and high, but still sustainable real growth in wages.
• This is also indicated by the data on record high coverage of the consumer basket with the wage:
  - The coverage of the average consumer basket with the average wage of 99.8% is 33.8 pp higher than in 2013;
  - The coverage of the minimum consumer basket with the minimum wage of 95% is 36 pp higher than in 2013;
  
  

RELATIVE STABILITY OF THE EXCHANGE RATE OF THE DINAR AGAINST THE EURO IS AN IMPORTANT FACTOR OF BUSINESS AND PLANNING CERTAINTY

• The relative stability of the exchange rate of the dinar against the euro, achieved and maintained in the past thirteen years is a result of the NBS’s commitment and careful and devoted monitoring of FX market developments.
• In the period since the introduction of the managed floating exchange rate in 2001 until August 2012, over EUR 14 bn net was sold in FX interventions (FX reserves were spent), and the dinar nevertheless weakened against the euro by over 50%. In contrast, since August 2012 to the present day the NBS intervened buying as much as EUR 10.9 bn net, аnd the dinar appreciated by 1.2% against the euro in nominal terms.
• In addition to maintaining the relative stability of the dinar exchange rate, the NBS contributes to the growth of FX reserves through net purchases of foreign currency, thereby further strengthening the resilience of the domestic economy and its financial stability, which are critical in times of various global uncertainties and crises.

FX RESERVES ALMOST TRIPLED AND THEIR STRUCTURE CONSIDERABLY IMPROVED

• Gross FX reserves, which stood at EUR 28.3 bn at end-July 2025, went up by EUR 18.2 bn (179%) from end-July 2012. Net FX reserves increased more than four times in the same period (from EUR 5.5 bn to EUR 24.1 bn).
• The rise in FX reserves was accompanied by an improvement in their structure – we increased significantly the quantity, value and share of gold.
  • Since August 2012 to date, the quantity of gold has more than tripled (from 14.8 tonnes at end-July 2012 to the current record 50.8 tonnes), with purchases in the international market (17 tonnes in total in 2019, 2020 and 2024), but also from domestic producers. It is noteworthy that the entire quantity of gold is of the highest quality and purity (over 99.5%).
  • The value of gold reserves rose almost eight times (from EUR 0.6 bn to EUR 4.7 bn);
  • The share of gold in reserves went up from 6.2% to around 17%.
  • Having imported 13 tonnes of gold from abroad (1 tonne left over from succession and 12 tonnes bought abroad), since July 2021 the bulk of gold reserves (45.6 tonnes) is in NBS vaults, with 5 tonnes bought abroad in early July 2024 currently in the special NBS account in Bern.

MORE FLEXIBLE AND EFFICIENT MONETARY FRAMEWORK

• In December 2012, we introduced a variable multiple interest rate model in the conduct of main open market operations through which we withdraw excess dinar liquidity from the banking sector on a weekly basis.
• This system has made the NBS monetary framework more flexible and efficient, which was of particular importance in the context of multiple global crises — the pandemic, the energy crisis, the outbreak of the conflict in Ukraine, and the sudden rise in global inflation.
• The NBS faced all challenges by implementing a wide range of measures from its monetary toolkit, always responding mildly and moderately but also gradually, leaving more room for citizens and businesses to adjust to the changes of financial conditions.

THE DINAR IS USED INCREASINGLY MORE IN THE DOMESTIC FINANCIAL SYSTEM AND DINAR SAVINGS POST RECORD HIGH LEVELS

• Dinar savings rose 11 times from end-2012, recording the highest annual increase so far in 2023 and 2024 (since 2001 when data monitoring started):
  • in 2023 by RSD 41.6 bn (43%), 
  • in 2024 by RSD 53.3 bn (39%).
  • The growth continued into 2025 and the dinar savings exceeded RSD 200 bn at end-July.
• A stable environment was conducive to the rise in the dinarisation of deposits of households and corporates relative to end-2012 – from 19.3% to 45.5%.
• Taken together, all this is a concrete confirmation of the rising confidence of citizens in the national currency and the central bank.

SIGNIFICANTLY BETTER FINANCING CONDITIONS FOR CORPORATES AND HOUSEHOLDS THAN THIRTEEN YEARS AGO

• Interest rates on dinar corporate and household loans are lower by 10 pp and 11 pp, respectively than in May 2013, when the monetary accommodation cycle began. This cycle lasted until 2021 when global inflationary pressures intensified.
  • Considerably lower interest rates were ensured despite monetary tightening (October 2021–July 2023) as a response to global inflationary pressures.
• The country’s lower risk premium driven by stronger domestic macroeconomic fundamentals pushed the interest rates down.
• For households, lower interest rates meant greater availability of new funding sources and higher disposable income on account of lower existing liabilities.
• For corporates, lower interest rates meant greater availability of funds for new investments.
• We pushed things further. By amending the Law on the Protection of Financial Service Consumers, we have capped the interest rates on other loans to individuals without undermining the principle of their market setting, resulting in a significant reduction in interest rates:
  • on credit card loans by 7.2 pp – from 22.3% in December 2024 to 15.1% in June this year;
  • on current account overdraft by 10 pp – from 27.9% in December 2024 to 17.9% in June this year.

A STABLE AND PREDICTABLE ECONOMIC ENVIRONMENT SUPPORTS INVESTMENT ACTIVITY

• From 2013 to 2024, EUR 38 bn was invested in Serbia through foreign direct investment (FDI).
• In 2024, a record inflow of EUR 5.2 bn was recorded.
• FDI was primarily channelled to export-oriented sectors, which contributed to:
  • the expansion and diversification of Serbia's export base and an increase in the share of goods and services exports in GDP from 40% in 2014 to 54% in 2024;
  • employment growth – by around 400,000 since 2014, and
  • the transfer of knowledge and technology.
• High project and geographic diversification of FDI has increased the resilience of our exports to reduced external demand even in the most challenging global conditions.

SUCCESSFUL PARTNERSHIP BETWEEN SERBIA AND THE IMF

In its reports, the IMF assesses that over the past thirteen years, despite external shocks, Serbia has achieved impressive economic results, which reflect the sound economic policy.

In April 2024, the IMF Managing Director Ms Kristalina Georgieva commended Serbia’s strong progress, saying that: 

1. Serbia is a bright spot in Europe.
2. The country’s fundamentals are robust.
3. Serbia has earned trust by working and producing results, creating new jobs and improving the living standard. Credibility comes with deeds.
4. Serbia is an example of a country committed to regional cooperation.
   5. By organising the "Expo" specialised exhibition, Serbia has clearly demonstrated its desire to develop at a faster pace.

In April 2025, the IMF Deputy Managing Director Mr Bo Li congratulated to the authorities on the robust growth of the Serbian economy:

1. The demonstrated resilience of the Serbian economy is impressive!
2. Serbia is one of the fastest-growing economies in Europe, despite numerous challenges from the global environment.
3. Serbia has built substantial buffers, and it is crucial to preserve them, as many countries lack such safeguards.
4. We continue to work productively with Serbia within the framework of the new non-financial advisory Policy Coordination Instrument

MAINTAINED AND STRENGTHENED STABILITY OF THE FINANCIAL SECTOR

• In order to strengthen the stability of the banking sector, four banks that had been operating with serious governance issues prior to 2012 were closed between 2012 and 2014. This helped restore confidence in the financial system, which is now stable, highly liquid and adequately capitalised. The responsible approach of the NBS was further confirmed in 2022 through the effective handling of the Sberbank case, without spending public funds.
• Investor confidence and regulatory credibility were also confirmed through greenfield investments in the banking sector (Mirabank in 2014 and Bank of China Serbia in 2016).
• The number of banks has been gradually reduced from 33 to 19, while the quality and range of services for citizens and businesses have improved. The consolidation of the banking sector is carried out in an orderly manner, as evidenced by 32 prior consents to ownership acquisition and eleven consents to bank mergers over the past thirteen years.
• Thanks to inter-institutional cooperation in resolving NPLs and the creation of a favourable business environment, the share of NPLs in total loans of the banking sector has been reduced from around 20% to 2.3%.
• In 2020, we enabled a loan and leasing repayment moratorium for citizens and businesses on two occasions (March and July), which was used by over 90% and 80% of borrowers, respectively. Debt rescheduling and refinancing were also made available to bank and leasing company clients who were particularly affected by the pandemic. Relief measures totalling RSD 111 bn were approved for more than 50,000 clients.
• Agricultural producers, including those engaged in the purchase and storage of fruit in cold storage facilities, were also granted debt rescheduling facilities with banks and leasing providers. As of June 2023, this measure covered 6,238 agricultural loan accounts, totalling RSD 24.2 bn. At the NBS’s initiative, banks continued to offer repayment facilities to agricultural borrowers even after this measure expired. Approximately RSD 5.4 bn worth of agricultural loans are being repaid under eased conditions (as at end-June 2025).
• Concluding with June 2025, more than 5,800 borrowers have used the debt rescheduling option for cash, consumer and other similar loans, totalling RSD 4.4 bn.
• Faced with a sharp and significant rise in EURIBOR rates, in September 2023 we temporarily capped interest rates on housing loans in euros. As a result, interest rates on housing loans were on average reduced by 2 pp from the levels to which they had increased, and loan instalments were lowered by 10% to more than 25%. This issue was systemically and permanently resolved in 2025 through amendments to the Law on the Protection of Financial Service Consumers, which ensured to citizens security regarding the maximum interest rates not only on housing loans but also on other credit products (cash and consumer loans, credit cards, and overdrafts on current accounts).
• We also supported the government’s housing loan programme for young people, which by the end of June 2025 had already reached a utilisation rate of over 36%, confirming the importance of the programme in addressing housing needs among the youth.

RECOGNISING THE IMPORTANCE OF INSURANCE SERVICES BETTER TAILORED TO USERS' NEEDS

As a result of decisive and responsible supervisory activities, primarily regarding compliance with requirements related to capital adequacy, the formation of the prescribed technical provisions, the implementation of insurance and reinsurance policies, the investment of insurance funds, and the enforcement of supervisory measures, we now have a sector that is stable, well-capitalised and liquid.

In numbers:

• Total premium increased from RSD 61.5 bn in 2012 to RSD 177.4 bn in 2024;
• The per capita premium more than tripled over the past thirteen years (from EUR 75 to EUR 230);
• The growth of life insurance premium (from RSD 11.98 bn to RSD 32.8 bn) confirms that an increasing number of people is ready to place long-term trust in insurance.
• The amounts of compensation paid to insured parties, i.e. citizens and legal entities, have grown faster than insurance premiums (claims paid increased 3.4 times, while premiums increased 2.9 times);
• The annual number of complaints filed against insurance undertakings has decreased from 18,814 in 2016 to 18,098 in 2024, despite the fact that the number of insurance policies has significantly increased (from 5,909,031 in 2016 to 9,104,591 in 2024). This is yet another confirmation of trust and recognition of the importance of insurance services.

SECURE PAYMENT SYSTEMS, INNOVATIVE SERVICES, AND EASIER, FASTER AND MORE AFFORDABLE SERVICES

The NBS continuously carries out activities aimed at improving payment systems and modernising cashless payments in Serbia. We have established a modern legal framework for payment services that encourages innovation and competitiveness in the market, in line with the best European and global practices.

• On 22 May this year, Serbia officially became a member of the Single Euro Payments Area (SEPA).
  o Meeting this formal requirement opens the door to improving cross-border payment transactions, as well as making payments by our citizens and businesses to entities in EU countries and other SEPA members more favourable – with lower fees and shorter payment processing times.
• Amendments to the Law on Payment Services adopted in 2024 have created conditions for the development of open banking, which is based on establishing two new services:
  • initiating payments from a user’s payment account, and
  • providing information about payment accounts that the consumer holds with one or more payment service providers.
• We have developed our own instant payment system – the NBS IPS system – which enables citizens and businesses to make payments anytime and anywhere, with money transferred to the recipient’s account in just a few seconds. We are among the few countries that have enabled instant payments at both physical and online points of sale based on a four-party payment scheme model.
• We have provided citizens and businesses with an extremely simple method for the payment of monthly bills issued by utility and other service providers by scanning the NBS IPS QR code using their mobile banking apps.
  • In 2024, 20.8 mn payments were made by scanning the NBS IPS QR code.
• We supported the "e-Pay" project, which enables Serbian citizens to pay electronically for the services provided by the Ministry of the Interior related to the issuance of personal documents, using instant payments by simply scanning the NBS IPS QR code displayed on a unified payment slip created on the "e-Pay" portal.
• In cooperation with banks, all payments to "government" accounts can be executed as instant payments, eliminating the need to submit paper proof of payment.
• The “Transfer” (Prenesi) service has been introduced, allowing citizens to easily make instant payments via mobile banking apps by entering only the recipient’s registered mobile phone number or selecting it from contacts, without the need to remember templates, record or enter the recipient’s account number.
• We have enabled instant payments at points of sale using various methods (IPS Show, IPS Scan), including deep-link technology for simple instant payments at online points of sale using just one device, such as a mobile phone, with full security.
• Payment institutions, electronic money institutions, and the public postal operator – JP Pošta Srbije – have been enabled to participate as indirect participants in the NBS IPS system. 
  • On these grounds, in addition to banks, we have one payment institution as an indirect participant with direct access to the NBS IPS system, as well as one payment institution, three electronic money institutions, and JP Pošta Srbije providing instant credit transfer services as entities with indirect access to the NBS IPS system. 
• Over the past thirteen years, the use of electronic services and cashless payment methods has significantly increased:
  • The number of issued Dina cards has tripled;
  • Interbank fees (the fees paid for a payment transaction based on a payment card between the issuer and the acquirer involved in executing the transaction) have been reduced five to six times — from an average of about 1% to 0.2% of the transaction amount;
  • Merchant fees (fees paid by merchants to banks for accepting payment cards) have been halved – from an average of over 2% to about 1% of the transaction amount.
• We have improved the national card system DinaCard by introducing:
  • new technology (since 1 June 2024, all cards are issued with contactless technology). As of 30 June 2025, a total of 1.9 mn contactless Dina cards have been issued;
  • new card functionalities – payment in instalments with debit cards as a substitute for cheques, and cashback services, i.e. cash withdrawal alongside purchase at all NIS Petrol and Gazprom gas stations, as well as at all Mercator, Roda, Idea, Maxi, and Tempo retail stores in the country.
• The number of merchants enabling payment with Dina cards at their online points of sale is increasing daily (currently around 3,000 merchants), and the number of users making payments online with the domestic card continues to grow every month.
  • In 2024, over 12.6 mn payments were made online using Dina cards, up by 30% from 2023
• We have enabled the issuance of the international DinaCard, which can also be used abroad.
  • Currently, around 720,000 chip-based DinaCard–Discover cards have been issued. These are used as domestic cards in Serbia but can be used abroad in the global Discover acceptance network in over 200 countries and territories worldwide.
  • As part of the efforts to expand cooperation between the NBS and Discover Financial Services, there is an ongoing project to enable the acceptance of Discover cards in Serbia.
• We have signed a Cooperation Agreement with the Chinese national card system UnionPay, regulating the acceptance of UnionPay cards in the DinaCard acceptance network, as well as the issuance of the joint DinaCard–UnionPay card.
  • The DinaCard–UnionPay is a contactless card used both in the DinaCard system acceptance network domestically and internationally in the UnionPay acceptance network in over 180 countries and territories worldwide.
  • Currently, UnionPay cards are accepted on 72% of POS terminals and 94% of ATMs within the DinaCard acceptance network.
  • Approximately 40,000 UnionPay card transactions are made monthly in Serbia.
  • The issuance of the joint DinaCard–UnionPay card has also begun.
• Banks recognise the advantages offered by the NBS Interbank and International Clearing of FX Payments:
  • Currently, thirteen banks headquartered in the Republic of Serbia, the NBS, six banks from Bosnia and Herzegovina, and one bank from Montenegro participate in these systems.
• In six systems operated by the NBS (payment systems and the DinaCard system), a total of 423.6 mn payments were processed in 2024, representing an increase of 91.2% compared to the total number of transactions processed in payment systems in 2012, when 221.6 million payments were made.
  • In the instant payments system, a total of 87,198,135 transactions were executed in 2024, confirming citizens’ trust in the NBS’s innovative solutions in the payment services market.
  • The average daily number of transactions processed in the NBS IPS system in 2024 was 238,246, which is 30% higher compared to 2023.
  • From the start of the NBS IPS system operation until 5 August 2025, 343.8 mn transactions were executed, their total value exceeding RSD 3,738.7 bn.
  • The average transaction execution time in the NBS IPS system in 2024 was 1.2 seconds.
• In 2018, the possibility to conclude contracts remotely and via video identification of users was introduced, and since then the number of concluded contracts has increased every year.
  • In 2024, a total of 323,899 distance contracts were concluded, which is 7.3 times more compared to 2019, when 44,295 contracts were concluded.
  • Of the contracts concluded in 2024, 28% were done via video identification, while 72% were concluded through other electronic means.
  • Starting from 2025, besides banks, non-bank payment service providers have also begun offering the service of concluding financial contracts remotely.

ENHANCED FUNCTION OF FINANCIAL SERVICE CONSUMER PROTECTION HAS BROUGHT SUBSTANTIAL POSITIVE MATERIAL EFFECTS

Over the past thirteen years, we have undertaken many activities within our function of protecting financial service consumers. We have regularly applied all legal instruments and protection mechanisms and further improved them in practice, which has led to significant, direct positive material effects for consumers.

• At the NBS’s proposal, a new Law on the Protection of Financial Service Consumers was adopted in 2025, which, among other things, caps interest rates for all types of household loans and requires banks to offer citizens loan repayment facilities in certain situations.
• We are one of the few countries that, back in 2019, prepared and implemented comprehensive regulations bringing order to the advertising of financial services area, ensuring that today all advertising data is accurate, unambiguous, and complete.
• In the past three years, we have resolved over 6,000 complaints filed by financial service consumers. Each complaint received due attention, as evidenced by the fact that 37% of complaints against banks were resolved in favour of the consumers, while 22% of complaints against insurance undertakings were found to be justified:
  o The positive effect for consumers whose complaints were resolved in their favour during these three years exceeds RSD 203 mn.
• Based on NBS measures, banks have written off RSD 2.94 bn of consumers’ debt arising from inactive current accounts.
• In the past three years, solely due to supervisory measures concerning the misuse of payment instruments, 996 consumers have been compensated with over RSD 111 mn.
• Based on NBS opinion, since 2020/2021 banks have returned (or reduced outstanding debt by) up to EUR 5 mn annually to consumers in case of early loan repayment.
• We have kept a close eye on banks’ market conduct, and due to unfair practices or actions contrary to regulations, we have prohibited some banks from charging certain fees, resulting in an effect of up to several million euros annually.
• We have actively encouraged competition and customer mobility – refinancing loans and, in general, switching banks have been made as simple as possible.

SECURITY AND PROTECTION ENSURED FOR CITIZENS IN THE FX AND CURRENCY EXCHANGE MARKETS

• As the regulator and supervisor of FX and currency exchange operations in the country since 1 January 2019, the NBS has ensured the security and protection of Serbian citizens in the FX and currency exchange markets through a proactive approach.
• We have conducted numerous inspections of FX and exchange operations and have taken corrective measures in cases of non-compliance with regulations, thereby protecting the public interest by preventing abuses and mitigating the spillover effects of the global economic crisis on the business environment in the Republic of Serbia.
• Amendments and supplements to the Law on Foreign Exchange Operations in March 2025 strengthened the regulatory and supervisory role of the NBS in the area of exchange operations by enabling during the licensing process the prevention of entry into the currency exchange market for legal entities whose conduct could undermine its stability.
• In the procedures of supervising FX operations of residents and non-residents, the NBS has been granted the authority to impose fines on entities that hinder or obstruct the supervision process or refuse to comply with the NBS’s orders.

MODERN REFORM LAWS AND REGULATORY SOLUTIONS SERVING THE INTEREST OF CITIZENS AND BUSINESSES

Through numerous regulatory activities, we have enabled:

• a modern legal framework that guarantees the independence of the NBS and provides it with adequate instruments for implementing monetary and foreign exchange policy (amendments and supplements to the Law on the National Bank of Serbia from 2012, 2015, 2018 and 2025);
• greater protection and improvement of the position of financial service consumers (amendments and supplements to the Law on the Protection of Financial Service Consumers), especially in the context of increasing use of information and communication technologies (Law on the Protection of Financial Service Consumers in Distance Contracts);
• modernisation of the provision of payment services both domestically and internationally, as well as increased competition in the payment services market (Law on Payment Services and its amendments and supplements from 2018 and 2024);
• creation of an ecosystem for innovative solutions in the digital assets market and its sustainable development (Law on Digital Assets and all accompanying by-laws);
• harmonisation, reduction and greater transparency of costs related to payments made by citizens and businesses (Law on Multilateral Interchange Fees and Special Operating Rules for Card-Based Payment Transactions, Decision on the Payment Account with Basic Features);
• introduction of financial collateral into the domestic financial market in accordance with international standards, which enhances legal certainty and efficiency in fulfilling obligations in the financial market, reduces credit and systemic risk (Law on Financial Collateral), and contributes to the development of the financial market;
• introduction of the bank resolution framework that ensures the continuity of critical bank functions, with full protection of depositors and minimal cost to the state (amendments and supplements to the Law on Banks from 2015 and 2025). The quality of this framework was tried and tested on the case of Sberbank;
• enhancement of the NBS’s supervision over exchange operations and FX transactions, including the introduction of stricter measures and additional obligations for exchange dealers, in order to protect citizens who want to exchange currency and to ensure that the dealers operate in a transparent and secure manner (amendments and supplements to the Law on Foreign Exchange Operations from 2025).

NBS’S AUTONOMY AS A MEANS OF ADVANCING THE GOALS OF CITIZENS AND BUSINESSES AND THE PUBLIC INTEREST

In March 2025, the provisions of the Law on the National Bank of Serbia were amended with the aim of further strengthening its independence and modernising its functions in contemporary areas of operation.

The following was established by law:

1. keeping and managing domestic resources of gold and other precious metals as part of the country’s FX reserves, along with the performance of other tasks within the competence of the NBS. This was achieved by specifying the Bank’s authorities in relation to the statutory priority right of purchase of all types of precious metals — in addition to gold (for which the NBS holds the right of priority purchase under the Law on Mining and Geological Surveys) — obtained through the exploitation, processing, or refining of mineral raw materials in the Republic of Serbia. This ensures that these valuable resources remain within the country, contributing to the preservation and strengthening of FX reserves.
2. preconditions for issuing the digital dinar – the Law establishes the legal basis for the issuance of a central bank digital currency (CBDC), should the necessary conditions for such an activity be met. This would follow comprehensive prior research, analysis, and the exchange of experiences and cooperation with other central banks.

NBS AND THE EUROPEAN INTEGRATION PROCESS – ALL CHAPTERS LED BY THE NBS ARE OPEN

We are among the central banks with the highest number of competences in the European integration process — involved in as many as eleven negotiating chapters.

• We lead two key negotiating groups: Financial Services (Chapter 9) and Economic and Monetary Policy (Chapter 17).
• We play an active role in Chapter 4 – Free Movement of Capital, where we serve as a secondary competent institution.
• All three of these chapters have been opened.

NOTABLE PROGRESS IN COMBATTING MONEY LAUNDERING AND TERRORIST FINANCING

• Significant legislative activities of the NBS in the area of combatting money laundering, terrorist financing, and the proliferation of weapons of mass destruction — carried out in cooperation with other competent authorities — have led to improvements in the legal framework governing this field. These efforts have also taken into account the use of modern technological tools in the financial sector, such as regulation of the video identification process for clients — one of the first such frameworks established in Europe. This service has seen wide practical application.
• The important role of the NBS in this area has been recognised through top ratings of compliance with international standards, awarded by relevant international institutions (FATF and MONEYVAL). These high ratings apply not only to the regulations governing the operations of financial institutions supervised by the NBS, but also to the effectiveness of their implementation.
  • Thanks to this, with the upgrade of its rating at the December 2023 MONEYVAL session for FATF Recommendation 15 (New Technologies and Virtual Assets), the Republic of Serbia has achieved compliance with all 40 FATF recommendations. This places Serbia among a select group of about ten jurisdictions worldwide that have attained this level of compliance.

YOUNG PEOPLE AT THE NBS – THE FIRST CHOICE FOR THE BEST 

• We actively work on creating and maintaining our position as the most desirable employer for young people, as an institution where they can gain unique knowledge in economics and finance.
• Over the past thirteen years, we have regularly organised internships for final-year university students in the Republic of Serbia and Serbian students at foreign universities. We have also strengthened cooperation with academic institutions in the Republic of Srpska by involving the best students from these faculties in summer internships.
• Over 850 students have had the opportunity to familiarise themselves with the key business processes of our central bank through professional internships, while the best participants have been given the chance to become a part of the NBS’s team.
• All of this has resulted in the share of employees under the age of 30 in the total workforce increasing from 5.7% in 2012 to 11.3% in 2025.

“In the times ahead, we will remain vigilant, attentively observing every innovation of this new era and responding cautiously. Our course remains steady, guided by the unwavering commitment to the general interest of all our citizens. Serbia will remain a haven of security for all investors, and we will continue our relentless pursuit of sustainable economic growth – one that draws us ever closer to the income levels enjoyed by advanced market economies”, concluded Governor Tabaković.