Issuing of Operating Licenses and Bank Set-up Procedures

Setting up of banks, including the issuing of preliminary bank founding permit and of operating license are regulated in detail by: 

• The Law on Banks  and
• Decision on Implementing the Provisions of the Law on Banks Relating to Granting of a Preliminary Bank Founding Permit, Bank Operating Licence and Consents by the National Bank of Serbia, as Well as the Provisions Relating to the Establishment of Criteria for Defining a First -Class Bank.

The text below is a summary of information contained in the above regulations.

A bank is set up as a joint-stock company. Bank founders may be one or more domestic or foreign legal entities or natural persons, which provide funds for the initial capital of the bank. Initial capital of the bank may be in pecuniary or non-pecuniary form (things and rights for the purpose of the bank’s operations). The pecuniary portion of a bank’s initial capital shall be no less than EUR 10,000,000 in the dinar equivalent, calculated at the official middle exchange rate on the date of payment.

Issuing preliminary bank founding permit

Along with an application for the issue of a preliminary bank founding permit, potential bank founders submit the following to the National Bank of Serbia:

• Data on the founders, the amount of their contributions, and number, type and nominal value of shares they are acquiring;
• The bank’s founding act and draft articles of association; 
• The founders’ statement that the pecuniary portion of initial capital will be paid to the temporary account with the National Bank of Serbia; 
• The founders’ statement that non-pecuniary assets will be transferred to the initial capital of the bank; 
• Data on all persons that will hold participation in the bank, and grounds of such participation; 
• Names and data relating to the qualifications, experience and business reputation of the nominated members of the bank’s managing and executive board; 
• The bank’s proposed programme of activities for the period of three years and draft business policy of the bank for the year in which the bank is founded; 
• Draft procedures for risk management and internal control of the bank; 
• If the bank is to be founded as a subsidiary of a foreign bank or other foreign financial sector person that is subject to foreign regulatory body supervision, evidence that the competent regulatory body of the home country has granted approval to the foreign bank or other foreign financial sector person regarding participation in the establishment of a bank in the Republic of Serbia, or evidence that no such approval is necessary under the regulations of such country; 
• If the bank founder is a foreign bank or a foreign financial sector person subject to supervision by the home country regulatory body, evidence that the requirements specified by the Law on Banks are met; 
• Letter of authority for the person to cooperate with the National Bank of Serbia in the process of granting a preliminary permit; 
• Evidence of payment of the fee in accordance with the decision on uniform fees charged for services provided by the National Bank of Serbia, as well as evidence of payment of the republic administrative fee in accordance with the law governing republic administrative fees;  
• Other data and documents at the request of the National Bank of Serbia.

The above documentation has to be submitted in the original form or in certified copy, and may not be older than six months. The documents have to be in the Serbian language; if they are written in a foreign language, the original or certified copy of such document has to be submitted along with certified translation in the Serbian language rendered by sworn-in-court translator.

The National Bank of Serbia has to render a decision on the application for the issue of a preliminary bank founding permit not later than 90 days after receiving the duly completed application. If the potential bank founders fail to submit to the National Bank of Serbia an application for the issue of operating license within 60 days following the granting of preliminary bank founding permit, such permit will cease to be valid.

Issuing of bank operating license

After obtaining a preliminary bank founding permit, the bank founders have to submit to the National Bank of Serbia an application for the issue of a full operating license and the following documents: 

• Evidence of payment of the pecuniary portion of initial capital, evidence of transfer of non-pecuniary assets into the bank’s initial capital, as well as statement regarding the origin of such assets;
• Evidence that the founders have provided appropriate business premises, acquired and prepared equipment for unimpeded operation of the bank, that the premises meet legal requirements relating to technical equipment, work safety, and protection and improvement of the environment, as well as that the premises and equipment enable access to all relevant data and information required for the conduct of supervisory function by the National Bank of Serbia;
• Evidence that the founders have engaged an external auditor for the bank included in the list specified in Article 52, paragraph 3 of the Law on Banks;
• Data on the organisational structure and human resource capacity of the bank; 
• Letter of authority for the person to cooperate with the National Bank of Serbia in the process of granting the operating license;  
• Evidence of payment of the fee in accordance with the decision on uniform fees charged for services provided by the National Bank of Serbia, as well as evidence of payment of the republic administrative fee in accordance with the law governing republic administrative fees.

The above documentation has to be submitted in the original form or in certified copy, and may not be older than six months. The documents have to be in the Serbian language; if they are written in a foreign language, the original or certified copy of such document has to be submitted along with certified translation in the Serbian language rendered by sworn-in-court translator.

The National Bank of Serbia shall render a decision on the application for the issue of bank operating license within 30 days from receiving the duly completed application. Not later than 30 days after receiving the resolution of the National Bank of Serbia on issuing operating license to the bank, a meeting of the bank’s founding assembly will be held. Acts adopted by the founding assembly have to be submitted for approval to the National Bank of Serbia within five days following their adoption.

The National Bank of Serbia decides on the granting of approval regarding the acts adopted by the bank’s founding assembly within 60 days after their submission. Not later than 30 days after obtaining the National Bank of Serbia’s approval regarding the above acts, bank founders are obligated to submit an application for entry of the bank in the register of business entities. The bank shall obtain legal personality as of the moment of being entered in the register of business entities.