Governor of the National Bank of Serbia (NBS), Jorgovanka Tabaković, opened the International Conference on Banking Law 2024, focusing on the comparative experiences in the application of EU regulations. She emphasized that by protecting financial service users, the central bank also ensures the stability of the financial system in Serbia.
Tabaković explained that the protection of financial service users is not meant to be an adversary to banks but to safeguard the financial system and the stability achieved in Serbia. She highlighted that clients and banks exist on opposite sides, with justice standing between them. “The protection of users of financial services is not a battlefield between banks, lawyers and other entities, but is part of a broader ecosystem where everyone must, and should, be a winner. This is crucial because we cannot exist without each other,” she stressed.
She added that what the client loses today will eventually be a loss for the bank, as asymmetries in information or strong legal teams may seem beneficial in the short term, but in the long run, losing clients will hurt the banks.
Tabaković also recalled that the Serbian Central Bank sponsored the creation of the Association for Banking Law seven months ago. Through this association, she said, the aim is to raise awareness of the interdependence between stakeholders, and this conference serves as a key platform for discussing these principles.
The Governor expressed her support for the association’s efforts in organizing the conference, where international experts would share experiences from their countries regarding the application of banking regulations, which Serbia is either already applying or will apply soon.
“For lawyers in a country that is a candidate for EU membership, it is vital to consider the practices of EU member states when implementing and applying EU regulations,” she noted.
The conference will cover a range of topics, from collective lawsuits and green finance to sanctions and bank restructuring. Tabaković also mentioned that Serbia had already been applying restructuring mechanisms even before the EU’s Bank Recovery and Resolution Directive, citing the country’s experience with resolving banks’ issues in 2012. This proactive approach helped reduce the costs associated with resolving the troubled banks, which amounted to approximately 750 million euros.
“These measures, though imperfect, have proven to be very useful in maintaining financial stability,” Tabaković pointed out.
She also spoke about the challenges facing the banking sector in the wake of the Ukraine conflict. While Serbia has not imposed sanctions on Russia, many domestic banks are owned by large European banks that have imposed restrictions on financial transactions with Russian entities.
“It will be interesting to hear from the experts today how banks in the EU and the UK are navigating sanctions and how they draw the line between enforcing sanctions and avoiding discrimination,” she added.
Tabaković mentioned that Serbia had already issued green bonds, but she stressed that more work needs to be done to ensure that such financial instruments, and bonds in general, are accessible to small investors and citizens.
“Collective lawsuits are an important topic, especially since many EU countries have experienced a large number of disputes in the banking sector. In Serbia, over 300,000 lawsuits have been filed against banks, primarily due to allegedly illegal fees for loan processing,” she said.
She explained that banks had gained a poor reputation with the public since 2008, which likely influenced judicial practices. She noted that banks had previously exploited their dominant position by unilaterally raising interest rates, transferring currency risks to users, and contracting unfavorable exchange rates.
“This excessive behavior led to a reaction, and since the financial crisis, we have entered a cycle of regulation and court practices that are more favorable to consumers. We need to explore whether collective lawsuits are an effective tool for protecting collective consumer interests and whether they offer a solution to the mass disputes that threaten citizens’ right to access the courts,” said Tabaković.
She concluded by emphasizing the importance of justice, even though it may be imperfect. “We must strive for justice, as it must remain our goal,” she said, encouraging participants to work toward concrete results.
The conference features four prominent experts from Germany, the United Kingdom, the Czech Republic, and Spain. Their presentations will cover collective lawsuits, the challenges of green finance, sanctions, and the rescue and restructuring of banks in the EU. The event is organized by the Association for Banking Law and is being held at the NBS.
