NBS: Temporary Measure to Mitigate Negative Effects on Bank Capital

Thursday, 30. Jun 2022.

At yesterday’s extraordinary meeting, the National Bank of Serbia (NBS) Executive Board adopted the Decision on Temporary Measure Regarding the Calculation of Bank Capital.

The new decision gives banks a possibility to mitigate the negative effects of the change in securities’ prices on capital, the change arising from upheavals in global financial markets, according to the NBS website.

The temporary measure, as said, relates to debt securities issued by the Republic of Serbia, autonomous provinces or local self-government units of the Republic of Serbia, which are measured at fair value through other comprehensive income in line with IFRS 9.

In addition to cushioning the impact of the change in securities’ prices on bank capital, with the said measure the NBS aims to:

– encourage banks to keep the purchased RS securities in their portfolios;

– open room for new bank investments in these securities; and

– help unlock banks’ capacity to continue with lending, particularly in the corporate segment, with a view to sustaining the domestic economic activity.

This way, according to the bank’s website, the NBS seeks to strike a balance between monetary tightening, needed to contain the effects of inflationary pressures in the global and domestic markets, and bolstering bank lending for continued support to the real sector and further economic growth.

The regulation enables banks to exclude from the calculation of CET 1 capital until the end of the year 70% of the net unrealized losses and gains from the valuation of the said debt instruments.

Banks can apply the temporary measure from June 30 to December 31, 2022.

Source: eKapija

12. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3314

11. Avg 2022.
NBS: Price of Banking Fees Not to Increase in the Next Year

10. Avg 2022.
First Tires Sent from Indjija to American Market

10. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3374

09. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3216

08. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3235

08. Avg 2022.
Air Serbia breaks monthly passenger number record in July

05. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3664

05. Avg 2022.
Air Serbia plans to fly to Chicago, Havana

04. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3763

03. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3821

02. Avg 2022.
Dinar-to-euro exchange rate at RSD 117.3708

02. Avg 2022.
July 2022, the second best month in history

01. Avg 2022.
A new Sava river port planned

27. Jul 2022.
EPS to turn into a joint-stock company?

27. Jul 2022.
Brnabic: The export of ICT services during the first five months was higher than 2017 year

26. Jul 2022.
The new Belgrade port will be built in Krnjaca - The bulk cargo terminal will cover an area of 37.6

25. Jul 2022.
Sale of Genex tower announced once again - Reduced initial price is RSD 1.46 billion

22. Jul 2022.
Fabrika Kartona Umka Expanding Facility – New Facility for Mass Preparation to Be Built

22. Jul 2022.
BAS Accepts Termination of Agreement by Mutual Consent – City to Complete New Bus Station

21. Jul 2022.
Supply of Russian Gas Through NordStream Continues

20. Jul 2022.
OTP Group to Become Owner of Alpha Bank Albania

19. Jul 2022.
Air Serbia to Fly Twice a Week on Belgrade-Chicago Line from April 2023

19. Jul 2022.
Czech Ambassador About “Avala Film” Project – Plan Includes Going Back to Top of Film Industry

15. Jul 2022.
Dollar Strengthening Could Increase Serbia’s Public Debt by EUR 580 Million

14. Jul 2022.
OTP banka is the winner of the Euromoney Award for Excellence 2022 for the best Bank in Serbia

14. Jul 2022.
State Considering Taking NIS Back from Russians and Returning It When Sanctions Are Lifted

13. Jul 2022.
Holcim Acquires Teko Mining Serbia

13. Jul 2022.
Air Serbia Expanding Fleet with Another Airbus A330-200 and Introducing Flights to China from Octobe

12. Jul 2022.
NID Projekt to Build Retail Park in Surcin