TI BiH requests that the Banking Agency and the Ombudsman for the RS Banking System be announced in the case of Bobar Bank

Banja Luka, 12. December 2014 — The blockade of Bobar Bank’s accounts and recent developments in the banking sector have upset financial service users and the general public in Republika Srpska, and Transparency International BiH believes it is not enough to declare stability in the banking sector, as the RS Banking Agency does. Media articles have previously warned about the sudden losses of Bobar Bank, while the interim manager of Bobar Bank, Savo Ševaljević, is a guest on ATV News on December 6, 2014. He said that in the case of Bobar Bank “it was possible to react earlier”, as well as that “there were a lot of problems in the work of the previous management”. This directly indicates the existence of previous irregularities in the operations of Bobar banka ad Bijeljina, and Transparency International BiH requires that the RS Banking Agency and the RS Banking Ombudsman be notified and inform the public about all activities previously undertaken in the Bobar banka case. According to the Law on the RS Banking Agency, the Agency and the Ombudsman for the Banking System are competent to supervise and take appropriate actions in order to prevent irregularities and illegal actions that obviously existed in the business of Bobar Bank. That is why TI BiH sent a request to these institutions for access to information on all actions taken in the past period by the RS Banking Agency and the RS Ombudsman, and relating to Bobar banka ad 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 interim manager Bobar banka ad Bijeljina created public concern, but also serious doubts about the quality and independence of the Agency. We remind you that the Agency is responsible for its work to the National Assembly of the RS and all citizens of the Republika Srpska. The Banking Agency of the Republika Srpska 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 the possible responsibility for the collapse of Bobar Bank.

Press rls – 12 12 2014 doc