End of Srpska banka - Deposits safe, layoffs definite...

The news that Srpska banka, “due to change of business policy”is shutting down all the branch offices except from the one in Belgrade, hit yesterday. Citizens, especially the ones from interior parts of Serbia, started running to banks to pick up the small amount they have as well as to take their confirmations without which they cannot change the bank.

In front of the branch office in Kraljevo, Ambulance had to jump in. While the Association of banks says deposits of citizens are safe and economists that this financial institution had a small stake at the market to disturb it, the National Bank of Serbia has not made any comments yet with respect to this scenario and if it could be prevented.

Accounts and credit liabilities such as overheads, credit cards and checks of citizens which clients cannot settle or close to the end of January, will be transferred to the branch office in Belgrade and will be valid until due date, Srpska banka announced. The bank says that time-bound savings are safe in Srpska banka and that after expiration of contracted terms they can be withdrawn also in Belgrade. All active loans of clients remain in the bank with unchanged previously agreed terms and all clients can uninterruptedly pay off their annuities without compensation at windows of Posta country-wide, it was announced.

Citizens are safe

Citizens and clients of Srpska banka which will in the future be service of special industry will not be damaged general secretary of the Association of banks of Serbia, Veroljub Dugalic said. He added all the affairs of Srpska banka for citizens of Serbia will most likely be transferred to Postanska stedionica.

Dugalic explained citizens will lonely have to return checks to Srpska banka since it will in the future, based on the decision of the Government of Serbia, will be special industry service.

Citizens’ checks will have to return to Srpska banka to be released since they cannot be compensated in any other bank except from the one which issued it, Dugalic explained at the press conference.

-The Association does not have yet precise instructions on behavior of its members in case of Srpska banka but more detailed information are expected very quickly when the Association gets them- Dugalic said. He reminded that the more than two months ago, the Government of Serbia decided to redirect business of Srpska banka to operations with special industry.

Fifth victim, more than 300 layoffs underway

Srpska banka is the fifth one which, due to problems with unpayable loans was taken over by Postanska stedionica. Agrobanka was the first one followed by the Developmental Bank of Vojvodina, PBB and Univerzal bank. The biggest debtors of Srpska banka are businessmen Miroslav Bogicevic and Goran Percevic.

RTS finds out unofficially that, out of 400 employees, only sixty people who will work at internal bank of special industry of Serbia, which was operating until a few years ago as YU garant or the Military service, will keep their jobs.

We would like to remind that Srpska banka originated from the Military service of NBY which serviced the entire special industry of Yugoslavia. After SFRY disappeared, the Military service was relocated from the National Bank and YU Garant banka was set up and in 2003 it changed the name into the current one.

No tectonic disturbances

Still, the clash of Srpska banka will not cause bigger changes at banking market since it has only, 0,6% of the market, Nenad Gujanicic from "Wise broker" thinks.

On the other hand, Grujanicic outlines it is necessary to think about whether Banka Postanska stedionica can hold the burden of all failed banks.