2012年-世界发展银行全球_Bank_Lending_to_Small_and_Medium_Enterprises___The_Republic_of_Serbia_37页_778kb

Summary of Serbia - Bank Lending to Small and Medium Enterprises

Core Content

This report provides an analysis of bank lending to small and medium enterprises (SMEs) in Serbia, focusing on the current practices, challenges, and future outlook of the banking sector in relation to SME financing. The study was conducted using a questionnaire and on-site interviews with eight banks that represent about 70% of the total SME credit market in Serbia.

Main Points

• Importance of SMEs: SMEs are a significant part of employment and economic growth in Serbia. They are also seen as having high growth and profit potential, which has led to increased attention from banks.

• Banking Sector Overview:

  • Serbia's banking sector comprises 36 banks with total assets of RSD 1,376 billion (USD 22.93 billion) as of end-June 2007.
  • Loans account for 47.5% of total banking assets, with enterprises and households being the main borrowers.
  • The largest banks in Serbia are subsidiaries of EU banks and are more active in SME lending.

• SME Lending Growth:

  • SME lending has seen strong growth, with entrepreneurs' credit increasing by 255% between 2005 and 2006.
  • While large enterprises have a higher percentage of loan access, SMEs are growing in terms of credit volume and percentage of total assets.

• Product Offerings:

  • Banks offer a wide range of products, including checking and savings accounts, export and import loans, overdrafts, investment loans, business credit cards, and payment services.
  • Products are tailored to the needs of the client, with no fixed sequencing in the offering process.

• Risk Management Practices:

  • Risk management is increasingly centralized and automated, with scoring models used for small enterprises and traditional methods for medium enterprises.
  • Basel II capital adequacy standards are influencing risk management practices, especially for international banks.

• Financial Infrastructure:

  • The credit Bureau of the Banking Association and the Solvency Center in the NBS play a crucial role in enabling modern credit risk assessment techniques.
  • These institutions also assist in the targeting and evaluation of SMEs.

• Government Programs:

  • The government has introduced credit and guarantee programs to support SMEs, but banks do not perceive them as particularly relevant.
  • There is a need for more systematic assessment of the impact of these programs.

• Challenges and Obstacles:

  • The most pressing issue is the high cost of regulatory compliance, which increases the cost of banking and credit.
  • Legal and contractual environment is a major obstacle, with weak creditor and property rights, inefficiencies in the judiciary, and slow bankruptcy procedures.
  • Macroeconomic factors, such as increasing inflation and tight monetary policy, also affect SME lending.

• Competition and Market Trends:

  • Banks are competing to develop specific products and improve access to SMEs.
  • The SME market is seen as underdeveloped but with good growth potential.
  • There is a first-mover advantage due to the limited number of banks SMEs use and their loyalty to existing institutions.

Key Information

• SME Definition: SMEs in Serbia are defined by the Law on Accounting and Auditing. Medium enterprises (MEs) have an average of 50-250 employees, annual turnover of €2.5-10 million, and average property value of €1-5 million. Small enterprises (SEs) have lower thresholds for these criteria.

• Market Segmentation:

  • SEs are treated as part of retail lending, while MEs are considered part of corporate lending.
  • Banks do not use a single definition for SMEs, leading to inconsistencies in lending practices.

• Regulatory Impact:

  • The implementation of Basel II standards is affecting risk management and capital adequacy calculations, particularly for international banks.
  • The NBS has implemented a tight monetary policy, increasing the cost of banking and credit.

• SME Credit Accessibility:

  • Despite availability, SMEs face challenges in accessing credit due to high costs and regulatory constraints.
  • The percentage of SMEs with term credit has increased over the years, but remains lower than that of large enterprises.

• Banking Practices:

  • Branch offices are still critical for SME access, but technological advancements are improving efficiency and flexibility.
  • Banks are developing more efficient and cost-effective access methods, supported by internal modeling and scoring systems.

• Future Outlook:

  • The SME lending market is expected to grow, but at a slower pace.
  • Banks are optimistic about the market's potential, though there is no consensus on the type of new products or services needed.

Conclusion

The report concludes that while the SME lending market in Serbia is growing and becoming more important for banks, it is still underdeveloped and faces significant challenges. Banks are adapting their strategies and risk management approaches to better serve this segment, but the high cost of compliance and regulatory constraints remain barriers. The government's role in improving the legal and financial environment is critical for the continued development of SME lending.