28.10.2013.

NBS Delicenses Privredna banka a.d. Beograd

At its meeting today, the NBS Executive Board issued a decision revoking the operating license from Privredna banka a.d. Beograd in accordance with the Law on the Assumption of Assets and Liabilities of Banks for the  Purposes of Safeguarding Stability of the Financial System of the Republic of Serbia.

The license was revoked following the Government’s conclusion which ordered Privredna banka a.d. Beograd, Banka Poštanska štedionica a.d. Beograd and Deposit Insurance Agency to enter into agreement on the assumption of a part of assets and liabilities of Privredna banka a.d. Beograd.

The Executive Board stated that the delicensing was preceded by a number of activities aimed at bringing the bank’s capital and performance ratios in line with the Law on Banks. After consultations with the Ministry of Finance, conditions were created to seek a strategic partner as one of the most rational and cost-effective solutions to ensure the bank’s business continuity. However, as the efforts to find a strategic partner failed and the bank was critically undercapitalised and likely to experience liquidity problems, the NBS Executive Board expressed a positive opinion on the assumption proposal of the Ministry of Finance, judging such action was necessary to preserve stability of the financial system and to eliminate systemic risks. 

Following assumption, the Executive Board delicensed Privredna banka and placed it under administrative management. This will be followed by the opening of bankruptcy proceedings.

The NBS has taken all the necessary measures in its field of competence to ensure smooth continuation of payment transactions and payout of deposits in Banka Poštanska štedionica on Monday, 28 October, which is the first day after the assumption.

Governor`s Office