Bank Lending to Small and Medium Enterprises : The Republic of Serbia

This report presents findings of a study of Bank lending to small and medium enterprises (SME) in Serbia. The study uses methodology developed by the Bank and already used in a number of studies in South America. The study is based on answers to standard questionnaires and detailed on-site interviews with eight banks. The interviewed banks are the most active in SME lending in Serbia and account for about 70 percent of the total market. Banks are currently offering a fairly broad range of both tailored and standardized products and are increasingly flexible with product pricing. This includes checking, savings and time deposit accounts; export and import loans; overdrafts for working capital and investment loans; business credit cards; various types of payment services; Internet and phone banking. The report is organized as follows: section two describes the banking sector and markets in Serbia, reviews definition of SMEs and provides key characteristics of the SME finance market in Serbia. Section three discusses details of SME access to finance. It describes the drivers and obstacles, government programs, and characteristics of the market environment. Section four focuses on how banks engage in lending to SMEs, describing their business models and their risk management. Section five provides a number of conclusions on the conditions of access and future trends.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2012-01
Subjects:	ACCEPTABLE COLLATERAL, ACCESS POINTS, ACCESS TO BANKING, ACCESS TO BANKING SERVICES, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCOUNTING, ADVISORY SERVICES, AGRICULTURAL BANK, AMOUNT OF CREDIT, APPROVAL PROCESSES, AUDITING, AVAILABILITY OF CREDIT, BALANCE SHEET, BALANCE SHEETS, BANK BRANCHES, BANK CREDIT, BANK LENDING, BANK LOANS, BANKING ASSETS, BANKING INSTITUTIONS, BANKING MARKET, BANKING MARKETS, BANKING SECTOR, BANKING SERVICE, BANKING SERVICES, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY PROCEDURES, BANKS, BORROWER, BORROWING, BORROWINGS, BUSINESS CENTERS, BUSINESS CREDIT, BUSINESS STRATEGIES, CAPITAL ADEQUACY, CAPITAL LOANS, CAPITAL REQUIREMENTS, CAPITAL STANDARDS, CAPITALIZATION, CASH FLOW, CASH MANAGEMENT, CDS, COLLATERAL, COLLATERAL REQUIREMENTS, COLLATERALS, COMMERCIAL BANK, COMMERCIAL BANKS, CONSOLIDATED FINANCIAL STATEMENTS, CONSUMER FINANCE, CONSUMER LOANS, COST OF CREDIT, CREDIT APPLICATIONS, CREDIT ASSESSMENT, CREDIT BUREAU, CREDIT BUREAUS, CREDIT CARDS, CREDIT DECISIONS, CREDIT GROWTH, CREDIT GUARANTEE, CREDIT HISTORY, CREDIT INFORMATION, CREDIT LINE, CREDIT LINES, CREDIT MARKET, CREDIT MARKETS, CREDIT POLICIES, CREDIT PRODUCTS, CREDIT PROGRAMS, CREDIT REPORT, CREDIT REPORTS, CREDIT RISK, CREDIT RISK MANAGEMENT, CREDIT RISKS, CREDIT SCORING, CREDIT SCORING MODELS, CREDIT WORTHINESS, CREDITOR, CREDITORS, CREDITS, CREDITWORTHINESS, CUSTOMER SERVICE, DEBT, DEBT BURDEN, DEBT OUTSTANDING, DEBTS, DEFICITS, DEMONSTRATION EFFECTS, DEPOSIT, DEPOSIT ACCOUNTS, DEPOSITS, DEVELOPING COUNTRY, DIVERSIFICATION, EARNING CAPACITY, ECONOMIC AGENTS, ECONOMIC CONDITIONS, ECONOMIC GROWTH, EIB, EMPLOYMENT, ENTERPRISE CREDIT, ENTREPRENEUR, ENTREPRENEURS, ENTREPRENEURSHIP, EXCHANGE RATES, EXTERNAL FINANCING, EXTERNAL FUNDS, FACTORING, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTION, FINANCIAL MARKET, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SYSTEM, FINANCING OBSTACLES, FIXED ASSETS, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN EXCHANGE, FORMS OF CREDIT, GOVERNMENT CREDIT, GOVERNMENT INVOLVEMENT, GUARANTORS, HOUSEHOLD LENDING, HOUSEHOLDS, HOUSING, INDEBTEDNESS, INFLATION, INFORMATION ASYMMETRIES, INFORMATION SHARING, INSURANCE, INTEREST RATE, INTEREST RATES, INTERMEDIARY BANK, INTERMEDIARY BANKS, INTERNAL FUNDS, INTERNATIONAL BANK, INTERNATIONAL BANKING, INTERNATIONAL BANKS, INTERNATIONAL FINANCE, INVESTMENT BANK, INVESTMENT DECISIONS, INVESTMENT FINANCE, INVESTMENT LOANS, INVESTMENT PLAN, JOB CREATION, LACK OF COLLATERAL, LEGAL FRAMEWORK, LENDING TECHNIQUES, LEVEL OF INTEREST RATES, LEVELS OF COLLATERAL, LOAN, LOAN AMOUNT, LOAN APPROVAL, LOAN PORTFOLIO, LOAN PROCESSING, LOAN PRODUCTS, LOAN RECOVERY, LOAN SUPERVISION, LOAN TERMS, LOANS FROM BANKS, LOANS TO BUSINESSES, LOCAL BANK, LOCAL GOVERNMENTS, MANDATES, MARKET DEVELOPMENT, MARKET ECONOMIES, MARKET ENVIRONMENT, MARKET STRUCTURE, MARKET VALUE, MARKETS DEVELOPMENT, MATURITIES, MATURITY, MICRO CREDITS, MICRO-ENTERPRISES, MONETARY POLICY, MORTGAGES, MOVABLE COLLATERAL, MUNICIPALITIES, NON-PERFORMING LOANS, NPL, OUTREACH, OVERDRAFT, OVERDRAFTS, PAYMENT SERVICES, PRIVATE INVESTORS, PRIVATIZATION, PROFITABILITY, PROPERTY RIGHTS, PRUDENTIAL REGULATIONS, PUBLIC MARKETS, PUBLIC POLICY, RATING SYSTEMS, REGIONAL BANKS, REGULATORY FRAMEWORK, REPAYMENT, RESERVE REQUIREMENTS, RESERVES REQUIREMENTS, RETAIL BANKING, RETAIL BUSINESS, REVOLVING FUND, RISK DIVERSIFICATION, RISK MANAGEMENT, RISK PROFILE, SAVINGS, SAVINGS ACCOUNTS, SAVINGS BONDS, SECOND LOAN, SECURITIES, SETTLEMENT, SHAREHOLDERS, SMALL BANKS, SMALL BUSINESSES, SMALL ENTERPRISES, SOCIAL SECURITY, SOLVENCY, START-UPS, SUBORDINATED DEBT, SUBSIDIARIES, SUBSIDIARY, TELECOMMUNICATIONS, TERM CREDIT, TERM CREDITS, TIME DEPOSIT, TRANSACTION COST, TRANSACTION COSTS, TURNOVER, TURNOVERS, UNION, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2012/01/16426642/serbia-bank-lending-small-medium-enterprises https://hdl.handle.net/10986/12796
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