Alpha Bank’s acquisition of Jubanka, a Belgrade-based bank with a 4% share of Serbia’s fragmented banking market, marks a new commitment by Greek banks to a country that is still perceived as one of the most risky in the region. While Athens-based banks have been expanding aggressively in Bulgaria and Romania, they had moved cautiously in Serbia, setting up small branch networks to complete a regional presence and serve Greek corporate customers that were already established in the country.
But the Serbian government’s decision to stop issuing banking licences to foreign investors and focus on privatisation sales has accelerated change.