Southeast European economic trends show shifting credit and banking stability

Economic indicators across Southeast Europe and the Balkans show varying trends in banking and business stability. In Bosnia and Herzegovina, banks anticipate a slight increase in consumer and non-purpose credit demand for the third quarter, though credit standards for companies may tighten.

In Croatia, the banking sector reported a total profit of 751.7 million euros for the first half of the year, a 5.5 percent decrease compared to the previous year. While profits fell, the system remains highly capitalized. Concurrently, Croatia has seen a rise in business bankruptcies, ranking as the third highest in the EU for bankruptcy growth in the second quarter, even as the average debt of blocked entrepreneurs has decreased.

Regional data from the EBRD indicates that the non-performing loan (NPL) ratio in Central, Eastern, and Southeastern Europe reached a historic low of 1.86 percent at the end of 2025, despite an increase in the total nominal amount of problematic loans. Montenegro and Serbia reported significant decreases in NPL volumes.

In North Macedonia, the average interest rate on total loans stood at 4.68 percent in July, reflecting a slight monthly increase.