Serbia revokes Alta Bank licence, starts bankruptcy

Serbia's central bank revoked Alta Bank's licence on Saturday and said bankruptcy proceedings had been launched, days after parliamentary elections ended the 14-year rule of former president Aleksandar Vucic's SNS party.

The central bank said the licence was revoked “to protect the interests of depositors and preserve the stability of the financial system”. It said Alta Bank's financial situation had deteriorated and there was a risk of further worsening in its financial position or liquidity.

Local media reported customers rushing to branches and cash machines in Serbia and neighbouring North Macedonia, where Alta Bank has a subsidiary, to try to withdraw savings. The central bank said such withdrawals were no longer possible in Serbia and that deposits would be repaid later. Alta Bank's North Macedonia subsidiary said operations there continued as normal.

The central bank said management of the lender had been handed to Serbia's Deposit Insurance Agency. It said the measure would keep the bank's assets under supervision and prevent their dissipation, helping creditors, especially households and businesses, recover funds as quickly as possible.

Several local media outlets have reported that the bank is owned and run by Davor Macura, who allegedly has close ties to the SNS. Alta Bank accounts for about 3% of Serbia's banking market.

The banking action came after a student movement defeated Vucic's right-wing nationalist SNS in parliamentary polls. Since the election, students have pushed for reform of state-run agencies they accuse of being beholden to Vucic's party.

Opposition Democratic Party leader Srdjan Milivojevic said Thursday he had filed a criminal complaint after receiving information about alleged plans to allow Alta Bank to transfer 50 million euros, or $56 million, to a correspondent bank abroad.

SNS leaders met in Belgrade on Saturday and agreed to hold an extraordinary congress on December 13 to elect a new leader, with Vucic the sole candidate.