Serbia’s central bank, NBS, said on Monday it revoked the license of state-owned lender Jugobanka Jugbanka over its failure to meet the capital requirements envisaged in the country’s banking law.
NBS also adopted a decision on the launch of bankruptcy proceedings at Jugobanka Jugbanka, with the Deposit Insurance Agency acting as bankruptcy administrator, the central bank said in a statement.
Jugobanka Jugbanka’s payment operations and the servicing of depositors will be assumed by state-owned lender Banka Postanska Stedionica, the central bank also said.
The attempts to find a strategic partner ensuring the continuity of the operations of Jugobanka Jugbanka, based in Kosovska Mitrovica, were unsuccessful and the conditions for starting a restructuring process were not fulfilled, NBS added.
Jugobanka Jugbanka had a capital of 968.7 million dinars ($10.1 million/8.2 million euro) at the end of September, according to its financial report posted on the website of the central bank.
According to Article 22 of Serbia’s Banking Law, the banks are obliged to have a capital not lower than the dinar equivalent of 10 million euro.