Thebanking regulator of Republika Srpska — one of two entities making upBosnia-Herzegovina — revoked the operating license of Banka Srpske in a bid toprotect the interests of depositors and maintain the stability of the bankingsystem, Capital.ba reported May 4.
Thegovernment-controlled lender reportedly has total deposits of around 150million Bosnian marka, with an estimated 55 million marka covered by thedeposit insurance system.
The decisionto revoke the license was taken April 27, but the bank's shareholders haveeight days to appeal, the news outlet added.
Thelender's interim administration submitted a proposal to cancel its license andlaunch liquidation proceedings to the regulator April 5, Capital.ba saidseparately on May 4. Appointed in November 2015, the interim administratorreportedly stated that Banka Srpske's financial condition cannot be improved tomeet minimum capital requirements, while its shareholders failed to meet anofficial deadline to submit measures that would eliminate irregularities andimprove the bank's financial position.
InAugust 2015, an independent auditor found that Banka Srpske suffered a loss of at least 17million marka in 2014 despite reporting a profit of 298,000 marka.
As of May 4, US$1 wasequivalent to 1.70 Bosnian marka.