of past monetary policy tightening and the maturing of corporate loans disbursed within guarantee schemes. even so, y - o - y growth in total loans picked up slightly relative to end - 2023, measuring 1. 3 % in march. credit growth was facilitated by growth in household loan demand and alleviation of banks ’ credit standards, notably for corporates. the results of our april lending survey show that almost all banks expect credit activity to post growth this year, which should pick up additionally in 2025, and a large number of banks expect growth in corporate and household lending to exceed 5 % this and the next year. these expectations are also founded on the positive assessment of the overall economic situation in the country. preserved financial stability and real sector indicators that suggest a significant pickup in economic activity since h2 2023 confirm that with adequate monetary policy, which was tightened continually, but gradually and in a balanced manner, we succeeded in ensuring a soft landing. 4 of 10 chart 8 lending outlook for 2024 and 2025 ( number of banks ) corporates households corporates households fall no change up to 5 % y - o - y growth over 5 % y - o - y growth source : nbs. the preserved financial stability is illustrated by the high capital adequacy of banks of close to 22 %, with liquidity indicators almost two times higher than the minimum, as well as the share of npls in total loans being kept at the historical low of around 3 %. this was certainly facilitated by the strong regulatory framework for banks that was implemented even before this multidimensional crisis, as well as the carefully combined and synchronised measures of monetary and macroprudential policies. chart 10 npl level and share in total loans, gross principle chart 9 banking sector capital adequacy and liquidity indicators ( in rsd bn ) ( in % ) ( in % ) 3. 0 2. 5 2. 0 1. 5 1. 0 regulatory capital to risk - weighted assets, in % ( lhs ) 0. 5 household sector corporate sector other sectors npl share in total loans ( rhs ) average monthy liquidity ratio ( rhs ) 0. 0 source : nbs. march march source : nbs. according to the flash estimate of the serbian statistical office, y - o - y gdp growth in q1 this year accelerated to 4. 6 %, and according to our estimate, seasonally - adjusted growth measured

of the state before the people and the reflection of the people before the world, just as the association of serbian banks is the mirror of banks before citizens and businesses. today, when we are reminding ourselves of what has been done, let us not be lulled with what we have achieved. just like all sectors, the banking sector must share the destiny of businesses and citizens, yesterday, today and tomorrow, because it is only in such way that we can last. “ study the past if you would define the future ”, said confucius. and i wish to add : look into the past only occasionally in order to remind ourselves of what we have lived through, what we have learned and done, while at the same time being constantly focused on future challenges. this is the recipe for success. there are no final victories and it is our task to continue to create conditions worthy of man of the 21th century – the conditions that future generations will look at with pride when commemorating the next jubilee. because nothing starts without people and nothing ends without institutions. happy anniversary! 2 / 2 bis central bankers'speeches