Lending and deposit facilities

Daily Liquidity Credit Against a Collateral of Securities

The NBS extends daily liquidity loans against the collateral of eligible dinar securities (not indexed to a foreign currency), based on a concluded liquidity loan agreement and the bank’s loan request.

Liquidity loans are extended to banks against the collateral of dinar securities issued by:

  • the National Bank of Serbia;
  • the Republic of Serbia;
  • an international financial organisation and development bank or a financial institution founded by a foreign government, with the credit rating of “AAA” by Standard & Poor’s or Fitch-IBCA , or “Aaa” by Moody’s;
  • a domestic company with a solvency rating of minimum “(D) Eligible solvency” as assigned by the Serbian Registers Agency or with other solvency/creditworthiness rating equivalent to “(D) Eligible solvency”.

Banks may use:

  1. daylight liquidity loans (intraday loans), i.e. loans repaid to the NBS on the same business day. Banks pay no interest on the amount of used and repaid daylight loan;
  2. overnight liquidity loans (overnight loans), i.e. loans that are not repaid to the NBS on the same business day. On this type of loans, the NBS charges interest equal to the key policy rate plus 0,90 percentage points. Banks are required to repay overnight liquidity loans and the appertaining interest by 11 am on the following business day.

If the bank fails to settle its liabilities within the envisaged timeframe, the NBS will collect the outstanding amount of liquidity loan and the default interest by selling or appropriating the securities placed as collateral. By way of exception, the NBS may also collect due but uncollected regular interest from the amount obtained through the sale or appropriation of collateral securities, if it fails to collect such interest on the promissory notes.

Depositing of Banks’ Excess Liquidity with the National Bank of Serbia

Pursuant to the Decision on Terms and Conditions of Depositing Banks’ Excess Liquidity with the NBS (“RS Official Gazette”, Nos. 48/2004, 60/2007, 35/2008 and 73/2008), a bank may place its excess liquid funds on overnight deposit with the National Bank of Serbia.

Banks are given the option to transfer excess liquidity to a special account of the National Bank of Serbia earmarked for excess liquidity deposits in the RTGS system – Account No. 908-88103-91, several times during each business day, but not after the expiration of time envisaged for the exchange of payment messages, in accordance with the operative rules on real time gross settlement.

Тhе National Bank of Serbia shall transfer such deposits back to banks’ gyro accounts at the latest by 10 a.m. on the business day following the day the deposits were placed.

The National Bank of Serbia shall calculate and pay interest on excess liquidity deposits placed by banks during the previous business day by applying the rate equal to key policy rate reduced by 0,90 percentage points.