RS Banking Agency Must Make a Statement on Bobar Bank Case

The blocking of Bobar Bank's accounts and recent developments in the banking sector have unsettled users of financial services and the general public in Republika Srpska, and Transparency International BiH believes that a brief public statement declaring the stability of the banking sector, as made by the RS Banking Agency, is not sufficient, reports the BH News Agency Patria.  

Media articles have previously warned of Bobar Bank's sudden losses, while the temporary administrator of Bobar Bank, Savo Ševaljević, stated as a guest on ATV news on 06.12.2014, that in the case of Bobar Bank, "it was possible to react earlier," and that "there were many problems in the work of the previous management."

This directly points to the existence of earlier irregularities in the operations of Bobar Bank a.d. Bijeljina, and Transparency International BiH demands that the RS Banking Agency and the Ombudsman for the Banking System in RS make a statement and inform the public about all activities they have previously undertaken in the Bobar Bank case.

According to the Law on the RS Banking Agency, the Agency and the Ombudsman for the Banking System are responsible for supervision and undertaking appropriate actions to prevent irregularities and illegal activities that clearly existed in the operations of Bobar Bank.

Precisely because of this, TI BiH has sent a request to these institutions for access to information about all actions taken by the RS Banking Agency and the RS Ombudsman in the past period, relating to Bobar Bank a.d. Bijeljina.

It is necessary for the Banking Agency to inform the public, in accordance with the law and regulations, thus justifying the purpose of its existence, because the appointment of a temporary administrator for Bobar Bank a.d. Bijeljina has caused public concern, but also serious doubt about the quality and independence of the Agency's work. We remind that the Agency is accountable for its work to the National Assembly of RS and all citizens of Republika Srpska.

The Republika Srpska Banking Agency must prove that it has taken all legally prescribed actions within its supervisory powers. TI BiH also calls on the competent investigative bodies to examine the work of the management and employees of the RS Banking Agency and determine any responsibility for the collapse of Bobar Bank.