o:28628 Nonperforming loans and financial stability the case of Serbia en Abstract: This paper investigates resilience and stability of the Serbian banking sector in the light of deteriorated quality of its credit portfolio since the last world economic crisis. Nonperforming loans became a burning issue across Eastern European region. We used a set of indicators to appraise the magnitude of nonperforming loans’ burden to the banking sector’s soundness. Indicators verify that the Serbian banking sector was robust and solvent throughout crisis. Nonperforming loans were concentrated in nonfinancial corporations’ sector, while households sector performed much better, which influenced remedy measures undertaken. We carried out a comparison with peer countries and reviewed nonperforming loans resolution strategy implemented in Serbia. Our finding is that measures taken helped noticeably in reducing stock of nonperforming loans, with a caveat that reduction might have been too fast and too large so that bounce back effect cannot be excluded. Overall, financial stability has been preserved despite serious threats and without government financial aid. Key words: banking sector, nonperforming loans, crisis management, financial stability 1552099 10.22190/FUEO1904349L 1552101 0354-4699 2023-04-06T13:16:53.124Z 44 no 46 Velimir Lukić Univerzitet u Beogradu Ekonomski fakultet 12943207 0000-0001-5989-5898 Svetlana Popović Univerzitet u Beogradu Ekonomski fakultet person 12914023 0000-0001-5133-8704 Irena Janković Univerzitet u Beogradu Ekonomski fakultet person 14632551 0000-0003-1115-4702 application/pdf 935929 https://phaidrabg.bg.ac.rs/o:28628 no yes 18 70 92000002 11A03 Facta universitatis. Series: Economics and organization 16 4 349 364 2019