Scrutiny of Banka Srpske's operations, who will compensate the funds

The RS Securities Commission (HOV RS) has banned Banka Srpske from conducting all securities transactions due to the introduction of a temporary administration in that bank.

The Commission's decision stated that the ban will last until the reasons for its imposition are rectified. The longest period for the ban has been set at six months, writes Patria.

The RS Banking Agency introduced a temporary administration in Banka Srpske on November 16 because it was not operating in accordance with the law. At the same time, all rights of the director, management, and supervisory board were suspended. Petar Mićić was appointed as the temporary administrator.       

The bank's closure happened overnight. Such bank closures are a model from the mid-20th century, intended to prevent so-called "bank runs".

No one knows for now how the funds held by citizens or businesses in the accounts of this bank, whose operations have completely collapsed, will be compensated. Namely, after the financial collapse of Balkan Investment Bank, RS leaders thought that the bank's name should be changed to save it. The recapitalization story failed.

Many today link the bank's name change to an attempt to superficially cover up traces of numerous criminal acts and the political influence of the leadership of Republika Srpska. 

When it comes to money and banks, nothing helps except honest business and sound financial logic.