BELGRADE (Serbia), May 28 (SeeNews) - Serbia's central bank said it has issued a permit to a newly incorporated lender, Nova Agrobanka, which will take over the portfolio of liabilities and claims of the delicensed Agrobanka.
Nova Agrobanka is wholly-owned by Serbia's state-run Deposit Insurance Agency which filed the banking permit request on Friday, the National Bank of Serbia (NBS) said on Saturday.
In December, NBS placed Agrobanka under receivership after it was discovered that the bank’s capital does not match the risks it has undertaken in its business operations.
The NBS said in a separate statement on Friday it has revoked Agrobanka's licence after its receivers concluded that the activities taken during the administration process have failed to improve the bank's financial standing. Simultaneously with the cancellation of Agrobanka's permit, the NBS appointed the Deposit Insurance Agency as its administrator.
Nova Agrobanka is set up to take over all liabilities and claims of Agrobanka, where the Serbian government is the biggest single shareholder, in order to ensure continuity of business operations and protect in full the interests of the delicensed bank's depositors and other creditors, the NBS said.