NBS revokes license of Agrobanka - Nova Agrobanka to be formed

The National Bank of Serbia (NBS) revoked the license of Belgrade-based Agrobanka on Friday (25 May 2012) after placing it into receivership in December 2011, it was announced on the website of NBS.

The receivership was imposed because it was determined during the inspection of Agrobanka's operation that its assets did not match the level of risk taken by that bank in its previous operations.

The same inspection led to a conclusion that the Bank's liquidity level was satisfying and above the prescribed minimum.

- Since the receivers and NBS assessed that the activities undertaken during the receivership failed to improve the financial situation in the Bank, despite producing certain positive results, the National Bank of Serbia determined that the prescribed conditions were met and revoked the Bank's license - NBS explained in its release.

NBS also appointed the Deposit Insurance Agency as the administrator of Agrobanka, thus authorizing it to act as the Bank's Managing Board, Executive Board and the Assembly during the period of administrative management.

In order to ensure the continuity of operations and protect the interest of depositors and other creditors, the Deposit Insurance Agency has submitted a request to NBS to issue a license to a new bank that would operate under the name of Nova Agrobanka (New Agrobanka).

As it was announced, both insured and total deposits of Agrobanka, as well as a portion of its other obligations and claims, would be transferred to the new bank.

- This means that all depositors and other creditors are fully protected because the new bank will continue to operate and service its obligations on a regular basis - reads the release on the website of NBS.