National Bank of Serbia revokes Alta Bank's operating license – Depositors able to access insured deposits up to EUR 50,000

The Executive Board of the National Bank of Serbia has decided to revoke the operating license of Alta Bank a.d. Belgrade. The Deposit Insurance Agency will be appointed as the bankruptcy administrator by court order.

The Executive Board noted that the license revocation had been preceded by supervisory activities aimed at increasing the bank's liquidity. It was determined that the bank's financial condition had deteriorated significantly over the preceding period, with a risk of further decline in its financial health or liquidity, thereby jeopardizing the interests of the bank's depositors, the National Bank stated.

Given that the conditions for revoking the bank's operating license, as stipulated by the Law on Banks, had been met, the National Bank of Serbia issued this decision to protect the interests of depositors and safeguard the stability of the financial system.

The Deposit Insurance Agency will facilitate the payout of insured amounts and provide depositors with access to their funds within seven business days, in accordance with the Law on Deposit Insurance, the statement concludes.

Furthermore, as announced by the National Bank of Serbia, the issuance of a decision confirming that the conditions for initiating bankruptcy proceedings against the bank have been met has resulted in the transfer of the bank's management to the Deposit Insurance Agency. Additionally, appropriate legal proceedings have been initiated against the bank, its shareholders, its governing bodies and other responsible individuals.

This measure ensures that the bank's assets remain under supervision and prevents their dissipation, thereby enabling all creditors, primarily individuals and businesses that are depositors, to regain access to their funds as quickly as possible.

– Depositors of this bank will be notified in a timely manner, as soon as possible, regarding which bank they can use to withdraw their deposits, up to the insured limit of 50,000 EUR, as well as the procedure for filing claims for any remaining amounts and how those claims will be settled – the National Bank stated.

The National Bank further noted that these proceedings did not in any way absolve the bank's debtors of their obligations. These individuals can expect to receive clear instructions on how to settle their debts to the bank following the commencement of bankruptcy proceedings.

Crucially, all creditors and clients of the bank should understand that this process not only protects their rights but also safeguards the financial stability of the banking sector and the financial market, both of which are essential prerequisites for the continued, orderly functioning of the entire economy.

– Protecting depositors and their claims is a priority. To ensure this protection is elevated and maintained at the highest possible level, it is essential to approach the matter with full information. Both the National Bank of Serbia and the Deposit Insurance Agency will make every effort to ensure the entire process is carried out as quickly as possible and in a transparent manner, while taking into account the impact on all market participants – concludes the statement from the National Bank of Serbia.

Alta Bank: Payout of insured deposits begins on Monday

Alta Bank has announced that, following the official notification from the National Bank of Serbia (NBS) regarding the revocation of its operating license, all activities related to payment cards, as well as domestic and foreign currency payment transactions, have been suspended. Furthermore, its branches are currently not operational.

In response to an inquiry from TV N1, Alta Bank stated that the payout of insured deposits would begin on Monday, in accordance with the procedures and instructions of the relevant authorities, reports Beta.

Vlada Republike Srbije

Ministarstvo finansija Republike Srbije

Narodna banka Srbije Beograd

Agencija za osiguranje depozita Beograd

Alta banka ad Beograd

Udruženje banaka Srbije

Udruženi sindikati Srbije Sloga

Alta Retail doo Beograd

Idea Marketi doo Beograd

Government of Serbia

Ministry of Finance

National Bank of Serbia

NBS

Deposit Insurance Agency

Alta Bank

Alta Bank Bitola

revocation of operating permit from Alta Bank

Law on Banks

Law on Deposit Insurance