"Banking system resistant to shocks" - central bank chief

"Banking system resistant to shocks" - central bank chief

"Following constant pressure at the end of last year and the beginning of 2016, an enormous shock like Brexit was what it took for everyone to see the significance and commitment of the NBS and the role of the central bank in maintaining stability," Tabakovic said at the presentation of the 2015 annual report on the stability of the financial system.

Turmoils in the international environment have also affected Serbia as a small, open economy, she noted, adding that the NBS had not waited for the country to become "swept by waves of uncertainty," but reacted in a timely manner in cooperation with the Serbian government.

"We acted in a proactive and unbiased manner, while the efficiency of interventions has increased," Tabakovic said, adding that international portfolio investors were confident in Serbia's government and economic stability and indicated a readiness for long-term investments in dinar-denominated securities.

NBS interventions have eased the external and internal imbalances, improving conditions for sustainable growth, she said.

"No risk"

The delayed formation of the new Serbian government has no effect whatsoever on National Bank of Serbia (NBS) operations, NBS Governor Jorgovanka Tabakovic said Wednesday, noting that the central bank expected Aleksandar Vucic's future government to introduce no changes to the economic policy.

"For us, the formation of the government is no risk factor whatsoever," Tabakovic said.

This is indicated by the fact that the NBS cut the key policy rate in February, in the belief that the economic policy would remain unchanged after the April elections, she said at the presentation of the 2015 annual report on the stability of the financial system.

The portfolio investors' interest in government securities is another proof of that, Tabakovic said.