Saturday , June 3 2023

Policy Online – Serbian Banking Market Integration


On the other hand, it is expected that the bank will take over the Serbian banking market.

Analysts are likely to say that 29 banks were too many in a country with gross domestic product (GDP) below 37 billion euros last year. However, since the existing foreign banks have already been bought by the existing domestic banks, they are in an unexpected situation.

The first action was withdrawn by Miodrag Kostic, who became a 100-year-old owner of Alk Bank to acquire Alpha Bank.

Last year, AIK Bank recorded a net profit of € 118 million in Serbia and approved € 4 billion in € 500 million in capital and the sixth in € 1.8 billion in approved loans.

The new players in this market are Andrej Jovanovic and Bojan Milovanovic. They purchased Nova kreditna bank Maribor's Serbian branch directly, renamed Direct Bank and "bought" Pireus and Findomestik Bank.

Prior to joining Piraeus, at the end of 2017, Direct Bank was ranked 10th with a profit of 16 million euros, ranking 19th with a total assets of 0.8% (1.5% of Pireus Bank's stake) and a capital of € 33 million Pireus Bank's capital is tripled to € 108 million.

Many people do not remember that almost 80 banks operating in Serbia 20 years ago were almost all domestic. Already in 2004, the number dropped to 47, and a new "player" such as the Bank of Tea or Mira Bank of the United Arab Emirates arrived in the Serbian market, but this trend continued.

In the specialty sector, it is almost in line with the fact that the banking market in Serbia has not yet been tightened because banks with market share of almost 1-2% can hardly survive in all difficult situations.

There are 14 banks with a market share of less than 1.5%. Of the six largest banks, Intesa, Komercijalna bank, Unnikredit, Societe Generale, Raiffeisen and AIK bank accounted for 62.2%, only 8%, but only 7.5% of total loans.

Treasurer Sinisa Mali has already announced that it plans to sell Jubmes Bank shares at Komercijalna later this year and next year, and that the strategy is being prepared for Serbian banks. Also, because the public has already withdrawn from the Croatian market for several months, the public speculated who could take over the Societe Generale Bank.

In favor of this paper, the concentration on the Serbian market is low. In Croatia, the four largest banks account for 70% of total assets, while in Serbia the four largest banks have approved 47% of all loans. Therefore, Ivan Nikolic, a member of the Council of the National Bank of Serbia, thinks that integration is not only a matter of expectation but also a desirable one. "This is a positive process," said Nicole Rick, a banker at BETA who says he does not see problems because he buys a domestic investor. "This is a positive process, because competition between banks will become more intense and competition will be intense, "He said. A member of the NBS committee previously said, "We have experience that foreign owners have not always succeeded."

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