The National Bank of Serbia (NBS) has sought to reassure the public that the closure of Alta Bank does not pose a threat to the country’s wider banking system, saying that deposits are protected, the sector remains stable and the central bank has the tools to safeguard the dinar’s exchange rate.
In a statement issued on November 2, the NBS said deposits covered by Serbia’s deposit insurance scheme are protected up to the legal limit of €50,000 per depositor. It added that the Deposit Insurance Agency has sufficient funds to compensate eligible depositors.
The central bank stressed that problems at an individual bank should not be interpreted as reflecting the overall condition of the banking sector, which it described as highly liquid and supported by substantial capital reserves.
“The banking sector is in a good position to support financial stability and ensure the uninterrupted provision of banking and payment services to citizens and businesses,” the NBS said.
It also said it had all the necessary instruments to preserve the stability of the financial system and could intervene in the foreign exchange market if needed to maintain the dinar’s exchange rate against the euro.
Alta Bank loses operating license
The NBS revoked Alta Bank’s operating license on October 31, citing a significant deterioration in its financial position and liquidity. The regulator said the situation had put depositors’ interests at risk.
Bankruptcy proceedings were subsequently initiated, while the Deposit Insurance Agency took responsibility for managing the process of protecting depositors. Customers are expected to be informed through which banks they can withdraw their insured deposits, up to the €50,000 limit.
Meanwhile, Serbia’s Organized Crime Prosecutor’s Office has launched checks into Alta Bank’s operations and possible transfers of funds abroad. The NBS has also filed a criminal complaint against the bank and several individuals in positions of responsibility.
Cross-border consequences for Alta Group
Alta Bank is part of the business group associated with Serbian businessman Davor Macura.
Macura was among four Serbian business figures for whom a request for US sanctions was reportedly submitted to Secretary of State Marco Rubio last month. Alta Group rejected the allegations behind the request as unfounded.
The consequences have also extended beyond Serbia. Montenegro’s central bank revoked Alta Pay Group’s authorization to provide payment services in the country, while emphasizing that the decision did not pose a risk to Montenegro’s financial stability.
In North Macedonia, the central bank introduced temporary administration at Alta Bank AD Bitola, citing accelerated deposit withdrawals following problems at the parent bank in Belgrade.
The developments have placed Alta Group’s regional operations under scrutiny, although the National Bank of Serbia maintains that the closure of Alta Bank does not undermine the stability of Serbia’s banking sector as a whole.
