NBS withdraws authorization to AIK Bank for acquisition of Gorenjska

(AIK Bank) The National Bank of Serbia (NBS) has withdrawn the authorization it gave to AIK Bank for the acquisition of Slovenia’s Gorenjska Banka, as the regular control procedure has shown irregularities in the operations of the Serbian bank, the NBS confirmed for Tanjug on January 30.

Potential new authorization would require another application by AIK, whereby the NBS would, as always, evaluate formal and essential meeting of all the requirements proscribed by the law, the central bank of Serbia says.

As they remind, the acquisition of a share in another financial institution, up to the defined limit, including the acquisition of financial institutions in other countries, requires approval by the NBS, which is conditioned on a positive assessment of the meeting of all the requirements.

– Having estimated that all the requirements were met at the given moment, and in line with its competence, the NBS issued the authorization to AIK Bank to acquire the 100% share in Gorenjska Banka in mid-2016, based on which AIK acquired a 20.99% share in the said bank in the meantime – the NBS says.

The central bank emphasizes that, in line with their competence, they are continuously controlling the solvency and the legality of the operations of banks from the aspect of risks that might lead to their financial position’s being jeopardized and monitoring in detail all the factors that might have an impact on the financial position of the banks in the local financial sector.

– Considering that, within its competence and regular control activities, it has determined irregularities in the operations of AIK Bank – based on the findings regarding these new facts arising after the issuing of the previous authorization, but also keeping in mind that the acquisition of a subsidiary, especially in the market outside the NBS’ competence, might contribute to increased exposure to risk and potentially jeopardize the bank’s financial position, the NBS estimates that the required conditions are no longer met – the central bank of Serbia told Tanjug.

For this reason, in line with its competence, they add, the NBS has taken the necessary measures toward AIK Bank and withdrawn the previously issued authorization. AIK Bank is thereby no longer authorized for further acquisition of shares of Gorenjska Banka.

The NBS also said that it continued to monitor the operations of all the banks in the Serbian market continuously, to the end of maintaining the achieved stability of the financial system, regarding both the entrance of new players in the local market and the expansion of local banks to other markets.

AIK Banka a.d. Beograd

Narodna banka Srbije Beograd

GORENJSKA BANKA d.d. Kranj

NBS

Gorenjska Banka

acquisition of Gorenjska Banka

authorization for acquisition of Gorenjska Banka

banking market in Slovenia

banking market in Serbia

bank mergers

acquisition of Gorenjska