NBS: Banks Should Show Responsibility and Estimate Justification of Increase in Prices of Fees and Services

The National Bank of Serbia has announced that it expects banks in Serbia to implement a sustainable and responsible business policy, which entails upgrading deposit affairs and the preservation and increase of the base of depositors and clients, and to estimate the justification of the increase in the prices of certain fees and services.

An analysis of the growth of the profitability of the banking sector of the Republic of Serbia compared to the same period last year has determined that, at the level of the banking sector, there has been an increase in the revenues based on fees and commissions, primarily when it comes the provision of payment services.

According to the NBS portal, the Law on Payment Services envisages for the provider of payment services to have the obligation to inform the users of payment services of the fees that are charged for the provided services in a clear, understandable and transparent way.

– Despite the fact that the manner of attracting and keeping clients is within the domain of a bank’s business policy, from the aspect of preserving financial stability, we are using the opportunity to point out that, sometimes, a seemingly short-term profit can reflect negatively on the bank’s operations through a long-term reduction of the banking client base – the NBS says in a press release.

Narodna banka Srbije Beograd

NBS

Law on Payment Services

banking operations

upgrade of deposit affairs

increase of depositor base

increase of client base

increase of prices of certain fees and services

banking sector profitability