Jorgovanka Tabaković: Serbian financial system stable and resilient to potential shocks

Speech by Dr Jorgovanka Tabaković, Governor of the National Bank of Serbia, at the presentation of the Annual Financial Stability Report for 2016, Belgrade, 27 July 2017.

Central bank speech  | 
28 July 2017
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Ladies and gentlemen, members of the press, dear colleagues,

Welcome to the presentation of the Annual Financial Stability Report for 2016. Consistent with best international practice, for the third year in a row, we have been presenting to you our analyses aimed at assessing the resilience of the financial system to shocks, and the measures that we adopt in order to make the system even more resilient.

Serbia is a small and open economy, which is why the developments in the international environment, notably in the euro area, may impact the domestic financial system. Last year saw a slowdown in global economic growth, the UK's decision to withdraw from the EU, and soaring oil prices following the decision of the major producers to cap oil production for the first time since 2008. Coupled with this, the divergence of monetary policies of the leading central banks still remains the key factor of uncertainty in the international financial market given that the ECB decided to extend the quantitative easing programme at least until late 2017, while the Fed continued with monetary policy normalisation. These decisions of the leading central banks may affect capital flows to emerging economies, including Serbia.