Regulatory Alerts2018-08-22
Decision on Terms and Method of Calculating the Effective Interest Rate and on the Layout and Content of Forms Handed out to Consumers
The Executive Board of the National Bank of Serbia mandates standardized methods for calculating the effective interest rate and prescribes specific layouts for consumer-facing forms regarding loans, leases, and deposits. Financial institutions must disclose the effective interest rate using a defined discounting formula and provide detailed repayment schedules that include all mandatory cash flows and charges. The regulation also requires banks to supply standardized offer forms and risk warnings for variable rates or foreign currency borrowing, while repealing previous general business terms decisions.
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