Banking Agency of the Republic of Srpska refuses to clarify a new financial affair

The Banking Agency of the Republic of Srpska and Banka Srpske refused to submit complete audit reports of Banka Srpske upon the request of the Transparency International Bosnia and Herzegovina (TI BiH), indicating they were confidential, regardless of the public interest and the fact that this is a state-owned bank. At the same time, the Agency refused to provide any information on the actions taken regarding this case, acting thus in a completely non-transparent and irresponsible manner, as in the case of Bobar Bank.

In fact, after the short audit reports indicating the illegal operations of Banka Srpske appeared in public, TI BiH requested from the Banking Agency of the Republic of Srpska and Banka Srpske the delivery of copies of complete reports made by the external auditor for 2013 and 2014. At the same time, it was requested from the Agency to provide information on all actions undertaken against the controversial Bank, which meant all additional information regarding the control of solvency and the legality of business operations, in order to clarify new financial affair.

The Banking Agency refused to provide all requested information by having declared them confidential, and thus ignored to take into account the public interest to disclose all actions undertaken so far, including the complete audit reports, in order to eliminate doubts regarding another financial affair. Banka Srpske also refused to submit the requested reports, and thus almost a year after Bobar Banka was shut, the users of financial services are faced with new disturbing doubts concerning the legality of business operations in the financial market monitored by the Banking Agency of the Republic of Srpska. Once again the Agency refused to act or explain its actions, making thus its role in the system of protection of financial system useless.

This practice only additionally deepens the doubts regarding the regularity of the Bank’s operations and the public must be urgently provided with all information on the business operations of Banka Srpske in order to restore the confidence in the banking sector, but also to clarify the doubts regarding the work of this Bank.

The Banking Agency, as a supervisory body, showed in both cases, of Banka Srpske and Bobar Banka, that it was not ready to demonstrate even the minimal responsibility, nor to justify its existence or role. TI BiH has already filed a complaint against the Agency regarding the violation of the Law on Free Access to Information in connection to the case of Bobar Banka, and it is expecting the judgment to be made in that case. However, it will continue to insist to have all the requested information provided in this case too, and it will use all available legal means to obtain them from the Banking Agency of the Republic of Srpska and Banka Srpske, since this is the state-owned bank and it is obliged to provide information of public interest.

Banking Agency of the Republic of Srpska refuses to clarify a new financial affair