Monday , January 18 2021

Politics Online – Consolidation of the Serbian banking market



Serbia's banking market is one that is waiting for the wave of motion to be left aside, while not unexpectedly expected.

Experts are expected to claim 29 banks for a country where gross domestic product is less than 37 billion euros last year. However, there is an unexpected situation because previously foreign banks were already bought by domestic banks and foreign banks are buying local businessmen.

The first move was withdrawn by Miodrag Kostic, who owns 100 years of AIK Bank to take over Alpha Bank.

Last year, AIK Bank was the first company to earn net profit of € 118 million in Serbia, the fourth for a total of half a billion euros and a sixth total of a total of 1.8 billion euros, the agency reported.

New players in this market were Andrej Jovanovic and Bojan Milovanovic, who first bought the Serbian branch of the Nova kreditna bank Maribor, renamed the Direct Bank, and then # bought & Pireus and the Findomestik Bank.

Before joining Piraeus, the Direct Bank at the end of 2017, the tenth with 16m euros profit, the 0.8% (Pireus Bank's share of 1.5%) and the total amount of capital 19 It was in line. From 33m euros, the capital of Pireus Bank is three times more than the 108m euros.

Many do not remember the banks, which have been operating in Serbia for more than 80 years, almost two years ago. Already in 2004, the numbers fell to 47, and while this trend continued, new ye players şt such as Bank of Tea or Mira Bank from the United Arab Emirates reached the Serbian market.

In professional circles, there is almost a consensus that the tightening of the banking market in Serbia has not yet occurred, because banks with less than two percent of the market share are hardly ever standing up in challenging games.

At present, there are 14 banks with a market share below 1.5 percent. While all of them approved only 7.5% of total loans, the shares of Intesa, Komercijalna bank, Unnikredit, Societe Generale, Raiffeisen and AIK banks, the sixth largest banks, were 62.2%.

Finance Minister Sinisa Mali announced that the government plans to sell its share in Jubmes Bank by the end of this year and by the end of this year in Komercijalna and that the strategy for the Serbian bank has been prepared. In addition, for months, the public has speculated that they will be able to buy Societe Generale Bank, because this French group has already withdrawn from the Croatian market.

In favor of this thesis, the Serbian market also has a low degree of intensity. In Croatia, the four largest banks account for almost 70% of total assets, and the largest four banks in Serbia approve about 47% of all loans. Therefore, Ivan Nikolic, member of the Council of Governors of the National Bank of Serbia, believes that consolidation is not only expected, but also desirable. Edi This is a positive process, because it will increase performance among banks and increase competitiveness, which will benefit customers because they will get loans at a cheaper price, ere he said. Earlier, a member of the NBS Council, "the experience showed that foreign owners are not always successful," he said.


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