TABAKOVIC: Banks must know their limits

Jorgovanka Tabakovic (Photo: Mc.rs)

Governor of the National Bank of Serbia (NBS) Jorgovanka Tabakovic says that it is important to keep citizens properly informed on the prices of certain banking services, adding that banks must know the limits of endurance of their clients.

NBS cannot influence banks as to which method to use to form the price for concrete banking products, Tabakovic told Sunday's issue of the daily Blic when asked whether it was logical to have citizens pay 35 percent interest on the allowed overdraft if inflation was at 4 percent.

- The price of certain service is determined by the market, but its imperfection is well known - Tabakovic pointed out.

According to her, it is important to keep citizens properly informed on the cost of every service so they could decide for themselves if they want to use it or not.