National Bank of Serbia Revokes Alta Banka’s Operating License

National Bank of Serbia (BetaPhoto/Ana Slovic)

The National Bank of Serbia (NBS) announced on Oct. 31 that it has revoked the operating license of ALTA banka a.d. Beograd and that the Deposit Insurance Agency would be appointed receiver by court order.

The NBS Executive Board said the decision to revoke the ALTA bank’s license was preceded by supervisory measures aimed at increasing the bank's liquidity. The central bank found that ALTA’s financial position had deteriorated significantly and that there was a risk of further deterioration in its financial position or liquidity, jeopardizing the interests of its depositors.

Given that the conditions for revoking the bank's operating license were met under the Law on Banks, the NBS decided to revoke the license to protect depositors' interests and preserve the stability of the financial system, the NBS says in the release.  The Deposit Insurance Agency will make it possible for depositors to receive their insured deposits and access their funds within seven business days, in accordance with the Law on Deposit Insurance.

"By simultaneously issuing a decision establishing that the conditions for initiating bankruptcy proceedings against the bank have been met, the National Bank of Serbia transferred control of the bank to the Deposit Insurance Agency. Appropriate proceedings have also been initiated against the bank, its shareholders and management bodies, as well as other responsible individuals," the NBS explained. The bank also said that the steps have been taken to make sure that the bank's assets remain under supervision and to prevent their dissipation, allowing creditors, primarily individual and business depositors, to regain access to their funds as soon as possible.