Postal Savings Bank: NBS Says the Bank Is Solvent

The National Bank of Serbia (NBS) said on the evening of November 6 that Postanska Stedionica (Postal Savings Bank), which by its own account has about 1,600,000 clients, is solvent and that its capital adequacy ratio is above the regulatory minimums. The statement came a day after some of the bank’s branches stayed open until 7:30 p.m., and a few even longer, because of a social media post.

What did Nemanja Sarovic post on November 5?

Nemanja Sarovic, leader of the “Ljubav, Vera i Nada” (Love, Faith and Hope) movement and a former member of parliament, posted on social media on November 5: “I hear Postanska Stedionica is kaput …”. The post does not say what it refers to.

The bank issued a statement the same day rejecting the claim:

“We reject the untrue, unfounded and highly irresponsible claims by Nemanja Sarovic that the bank is ‘kaput’ and that it will ‘go under’. Publishing such messages, without a single piece of evidence attached, is unacceptable harassment of clients and damage to the reputation of this institution.”

The bank asked Sarovic to withdraw the claim and publicly apologize to clients and employees. We found no response from him to that demand. In the same statement, the bank says that on November 5 it signed a contract with the Deposit Insurance Agency on paying out the insured deposits of Alta banka savers, and that it is arranging pension payments for that bank’s customers.

The bank also called on state authorities to look into the posts, with a warning about how many clients are affected:

“We call on the competent state authorities to examine, within their powers, the circumstances and consequences of such posts and to take the measures provided by law if they find a violation of the law. Spreading unfounded claims about the collapse of a bank can cause fear and harm its 1,600,000 clients, its employees, the state and trust in the financial system.”

Kurir adds that criminal complaints will be filed against unknown persons for spreading panic, without saying who is filing them. The bank also reminded the public, as reported, that it has been in business for 105 years.

Mondo carries the extended branch hours based on Blic’s reporting, while Kurir cites unofficial information: the bank’s director calmed clients who wanted to check their balances or withdraw money, and payouts were made in both dinars and foreign currency.

What does the National Bank of Serbia say?

The central bank says that, within its statutory powers, it “continuously monitors the operations of all banks”, including Postanska Stedionica, which is majority state-owned. The key passage of the statement reads:

“The bank is solvent, its capital adequacy ratio is above the regulatory minimums, it duly meets all its obligations to clients, and pensions and other payments from the budget of the Republic of Serbia are being paid and will continue to be paid on regular schedule.”

According to the same statement, the bank’s assets include a significant share of liquid assets: cash, funds in accounts and securities of the Republic of Serbia. The bank operates profitably and posts positive financial results. The published text gives no figure for the capital adequacy ratio or the share of liquid assets.

The National Bank of Serbia adds that it supervises the bank’s operations directly and daily, tracking relevant indicators every day and checking regulatory and supervisory requirements:

“Through the measures taken, the National Bank of Serbia guarantees the safety of operations with citizens and the economy and will, within its legal powers, continue to monitor the operations of Postanska Stedionica and take appropriate measures, in order to preserve the stability of the bank and of the financial system as a whole, as well as to protect the interests of depositors and other users of financial services.”

What did Marko Jankovic say about the link to Alta banka?

Part of the backdrop is the bankruptcy of Alta banka: payouts of insured deposits to its savers begin on November 13, and Postanska Stedionica is the paying bank. Marko Jankovic, chairman of the Securities Commission, said on RTS on November 6 that there is no basis for comparing the two banks:

“There is no analogy whatsoever between the situation that existed at Alta banka before bankruptcy proceedings were opened and the situation today at Postanska Stedionica.”

According to him, the National Bank of Serbia has been carrying out supervision at Postanska Stedionica since November 2, and to his knowledge the teams doing it are not the ones that supervised Alta banka. Jankovic believes the information institutions receive from banks points to a considerably more favorable liquidity position than previously presented to the public. The commission, he said, has been in continuous session since October 30 or 31, when the National Bank of Serbia delivered its decision on Alta banka.

On the role of Postanska Stedionica as the paying bank, he said:

“The very fact that Postanska Stedionica is the paying bank for the insured deposits that will be paid out to Alta banka clients tells you that the system is making sure that bank stays healthy so it can meet all of its obligations.”

He concluded with the line: “What is certain is that this bank has the potential to keep operating.”