Serbia's central bank has withdrawn the operating licence of Alta Banka, the lender that until now handled payments for the Serbian state, according to NOS. The regulator, known as the NBS, said the bank's liquidity was inadequate despite recent interventions and that account holders' interests were at risk. The decision was taken overnight, NOS reports.
The move caps days of speculation that people close to former president Aleksandar Vucic had moved large sums out of Alta accounts to Russia and North Macedonia. NOS does not say whether that speculation is confirmed.
Why it matters
Alta was not an ordinary bank. State payments for electricity, fines and other public services ran through it, and it was closely tied to the previous governing establishment. Its collapse therefore touches both the financial system and the political transition now under way in Serbia.
Vucic was voted out on Sunday after twelve years in power. The big winner was the Students' List, which campaigned on ending widespread corruption and prosecuting those responsible. The bank's failure, coming days later, is an early sign that the handover from Vucic's party to the students will not run smoothly.
NOS correspondent Thijs Kettenis frames the licence withdrawal as part of a steady erosion of the power of the circle around Vucic, one that has now reached the financial sector.
A bank built for business with Russia
Alta was one of the few Serbian banks that made it possible to transact with Russia. Serbia has not joined Western sanctions against Moscow, but the penalties still complicate sending or receiving money there. Most of Serbia's largest banks belong to EU financial groups, mainly in Austria and Italy, and those parent companies do observe the sanctions.
Alta, the country's ninth-largest bank by size, was owned by a wealthy Serbian businessman. NOS notes that Serbians joke the name Alta is formed from the first letters of the first names of Aleksandar Vucic and his wife, Tamara.
Whether the licence was pulled because people close to Vucic wanted to move money to safety before the formal transfer of power is not clear, according to NOS. What is established is the liquidity shortfall cited by the regulator.
Depositors protected, supervisors divided
The authorities are keen to keep Alta's failure from spilling into the wider financial sector. Account holders are covered for up to 50,000 euros under Serbia's deposit guarantee scheme and can file claims from Monday, the NBS said. The Serbian banking association stressed that Alta's troubles do not affect other banks, which it described as operating normally, stably and without restrictions.
Inside the NBS leadership, the episode has caused open conflict. Four board members are demanding a criminal investigation into how Alta was supervised. They say they learned of the bank's precarious finances only yesterday, shortly before the licence decision. The only board member who does not back such an inquiry is their boss, NBS governor Jorgovanka Tabakovic, a Vucic loyalist, according to NOS.
Meanwhile the state electricity company has already published a new account number for citizens to pay their bills.
A long road to power
The formal transfer of power has barely begun. Run-off voting is required on Sunday at 53 polling stations where irregularities were found last week. The electoral commission must then certify the result, after which interim president Ana Brnabic, another Vucic ally, has thirty days to convene parliament. Only then can a government be formed.
Throughout that period the outgoing administration remains in control. NOS reports that the Students' List is therefore likely to face financial setbacks before it can even start delivering on its promise to tackle corruption. The list has called on staff at public institutions to gather and report evidence of irregularities, including destroyed documents and money moved out of the country.
Watch whether the four NBS board members' call for a criminal inquiry gains traction, and whether deposit payouts proceed smoothly when claims open on Monday.
