The National Bank of Serbia revoked the operating licence of Alta banka a.d. Beograd, stating that the wider banking sector remains stable and that insured deposits will be fully protected.
- Alta banka's operating licence was withdrawn to protect depositors and creditors.
- Deposits up to EUR 50,000 per depositor per bank are guaranteed by the Republic of Serbia.
- The Deposit Insurance Agency has the funds to pay depositors within the legal deadline.
- The NBS says the banking sector is well capitalized, highly liquid, and can support additional liquidity if needed.
- The central bank reaffirmed its commitment to keeping the dinar stable against the euro.
The National Bank of Serbia (NBS), the country's central bank, said the banking sector remains stable, well capitalized and highly liquid after it decided to revoke the operating licence of Alta banka a.d. Beograd. The NBS stated that all necessary institutional, financial and regulatory mechanisms are in place to defend that stability.
According to the central bank, the licence was withdrawn to protect the interests of the bank's depositors and creditors. The NBS stressed that problems at a single bank should not be equated with the condition of the sector as a whole, which, it said, holds significant capital and liquidity reserves and continues to serve households and companies as usual.
Deposit insurance
The NBS said all deposits covered by the statutory deposit insurance system are protected and will be paid out in the full insured amount. The legal limit is EUR 50,000 per depositor per bank, and the payout is guaranteed by the Republic of Serbia.
The Deposit Insurance Agency has the funds required and will pay depositors within the period set by law, the central bank said. Depositors will be informed in good time which bank will carry out the payouts and what procedures they need to follow.
Liquidity support and the dinar
The NBS said it has all the instruments needed to provide additional liquidity support to banks if necessary, in line with its legal powers. It added that the banking sector is well placed to support financial stability and to ensure that banking and payment services continue without disruption.
The central bank also reaffirmed its commitment to keeping the dinar stable against the euro. It described exchange rate stability as the cornerstone of Serbia's macroeconomic policy and said it has the resources to maintain it, including a high level of foreign exchange reserves.
The NBS said it will continue to use the instruments available to it, including interventions on the foreign exchange market whenever needed, to offset pressure on the dinar. It said it will work with the banking sector and other competent institutions to keep the financial system functioning normally.
What it means
For Alta banka clients, the key point in the statement is that insured deposits up to EUR 50,000 will be repaid by the state-backed deposit insurance system. The NBS did not name the bank that will handle the payouts, saying only that depositors will be notified. Further details on the procedure are expected to be announced by the authorities.
Frequently asked questions
Why did the National Bank of Serbia revoke Alta banka's licence?
The NBS said the licence was withdrawn to protect the interests of the bank's depositors and creditors. It stressed that problems at one bank do not reflect the condition of the sector as a whole.
Are my deposits at Alta banka safe?
Deposits covered by the statutory deposit insurance system are protected and will be paid out in the full insured amount. The legal limit is EUR 50,000 per depositor per bank, guaranteed by the Republic of Serbia.
Which bank will handle the deposit payouts?
The NBS has not yet named the bank that will carry out the payouts. Depositors will be informed in good time about the bank and the procedures they need to follow.
Is the Serbian banking sector still stable after this decision?
According to the NBS, the banking sector remains stable, well capitalized, and highly liquid. It continues to serve households and companies as usual, and the central bank has the instruments to provide liquidity support if necessary.
