Intent to regularly monitor movements in household lending rates, the National Bank of Serbia conducted three surveys between October 2008 and April 2009 to enquire whether commercial banks planned to raise margins on loans in repayment status. Of 35 respondents, 20 denied any such plans, while 15 said their final decision depended on movements in the international money market.

In line with the provisions of loan agreements which stipulate discretionary margin increase, some banks raised their margins on loans in repayment by 0.75–2.5% (according to reports provided by banks themselves):

1. ALPHA BANK SRBIJA AD BEOGRAD
2. ERSTE BANK AD NOVI SAD
3. EUROBANK EFG ŠTEDIONICA AD BEOGRAD
4. PIRAEUS BANK AD BEOGRAD
5. PROCREDIT BANK AD BEOGRAD
6. RAIFFEISENBANK AD BEOGRAD
7. HYPO ALPE ADRIA BANK AD BEOGRAD
8. UNIVERZAL BANKA AD BEOGRAD

However, after the last of the three surveys was completed, the NBS received a number of complaints against banks which had initially denied any intention of increasing their margins, but later on did otherwise.

The NBS will, therefore, continue to carry out this kind of surveys at least once in six months and will inform the public of the results to show which banks, and to what extent, adhere to the good business practices, especially now that the financial crisis has led to significant changes in the price of money and capital.

Once again, the NBS urges households to shop around when deciding to take out a loan and to make an informed decision on which bank to borrow from once they have taken all costs, charges and expenses into account.