15.01.2015.

Delicensing of Razvojna banka Vojvodine Was the Only Right Solution

Republic of Serbia and AP Vojvodina had to ensure additional RSD 6.36 billion for the coverage of deposits held with Razvojna banka Vojvodine

With reference to media writings that question the justifiability of the delicensing of Razvojna banka Vojvodine and allegations that this bank (now in bankruptcy) will repay all its debts and that there will be money left for distribution among bank shareholders, the NBS underlines that all the facts indicate that the delicensing of the bank was the only right solution. 

The NBS wishes to remind the public that Razvojna banka Vojvodine was delicensed on 6 April 2013 due to a chronic shortage of capital, critical undercapitalisation, compromised ability to settle its liabilities to creditors and hence potential to cause systemic risk to the financial sector of the Republic of Serbia.

In accordance with the Conclusion of the Government of the Republic of Serbia, on 6 April 2013 Razvojna banka Vojvodine entered into Agreement on the Assumption of a Part of Assets and Liabilities with Banka Poštanska Štedionica a.d. Beograd and the Deposit Insurance Agency. Under this agreement, all of its insured and uninsured deposits in the amount of RSD 17.55 billion dinars were transferred to Banka Poštanska štedionica a.d. Beograd. 

As Razvojna banka Vojvodine lacked sufficient liquid and quality assets to cover the deposits transferred, the Republic of Serbia and the Autonomous Province of Vojvodina had to ensure additional RSD 6.36 billion.  

Liabilities to other creditors which were not transferred to Banka Poštanska štedionica a.d. Beograd were around RSD 2 billion and accounted for only 10% of total liabilities of Razvojna banka Vojvodine. The fact that the funds for the payment of these liabilities have not been recovered from the bankruptcy estate nearly two years after the delicensing of Razvojna banka Vojvodine only goes to show that revoking the bank’s operating license was the only right thing to do.

Governor`s Office