Parliament adopts set of laws on banks

BELGRADE - The Serbian parliament adopted on Tuesday the set of six laws to strengthen bank control and introduce mechanisms of the previously conducted intervention of the National Bank of Serbia (NBS) in the case when banks face problems in their conduct of business, and MPs also passed the amendments to the law on public procurements.

The parliament adopted the amendments to the Law on Banks, Law on the Deposit Insurance Agency and the Law on Bankruptcy and Liquidation of Banks and Insurance Companies.

The parliament also adopted the amendments to the Law on Ministries, Law on Deposit Insurance and the amendments to the Law on NBS.

The bill of amendments to the Law on Banks places a wider range of measures at NBS disposal which will make room for a more efficient intervention in case of problematic banks, and NBS will be able to use the instruments before and after it withdraws the bank's banking licence.

NBS will take over the role as the body in charge of bank restructuring, and this procedure will be separated from bank supervision.

The law also envisages the constitution of a specific-purpose bank and NBS will issue the licence for its conduct of business.

The aim of the measures is to maintain financial stability and minimise the use of budget funds by transferring bank losses to shareholders and bank creditors.

The Law on the Deposit Insurance Agency envisages annulment of the Agency's authority in case of bank restructuring and implementation of the test of minimum costs.

The Law on Bankruptcy and Liquidation of Banks and Insurance Companies introduces a mechanism that needs to accelerate the procedure of bankruptcy and liquidation procedures for banks and insurance companies.
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