NBS: Capital withdrawal by foreign banks declines in H1 2013

The National Bank of Serbia (NBS) announced in a release on Friday (2 August 2013) that both the pace and volume of capital withdrawal by foreign banks in Serbia had declined in the first half of 2013 relative to the same period in 2012, in contrast to other countries of the region where the pace and volume of capital outflow was increasing.

According to the release, there has been no equity capital withdrawal from domestic banks in the first half of 2013 nor in the same period last year.

At the same time, interest outflows contracted by EUR 30.8 million, while profit withdrawal by foreign banks fell by EUR 64.6 million, year-on-year.

The net outflow under disbursements and repayments of domestic bank loans to foreign banks fell by EUR 112.5 million.

Foreign banks increased their net investment in government securities by EUR 744.9 million in the first half of the year.

Given the above, it is clear that capital withdrawal has slowed in Serbia this year relative to the year before.