The Banking Agency of Republika Srpska has filed for the bankruptcy of local lender Banka Srpske, which was earlier placed in liquidation, local media reported.
The Banking Agency decided to submit a bankruptcy request to the competent court because Banka Srpske is insolvent and the liquidation process can not be implemented in a way that would protect the interests of creditors, news portal capital.ba quoted the bank's liquidation administrator Petar Micic as saying.
This is the second bank in liquidation in the Republika Srpska that is likely to go bankrupt, according to capital.ba. Earlier this year, bankruptcy proceedings were launched at Bobar banka.
In August 2015, local media reported that an audit at Banka Srpske found a loss of at least 17 million KM (8.7 million Euros) in 2014 instead of the stated profit of 298,000 KM. Banka Srpske is 99.95% owned by the RS government.
Also in 2015, the RS president said the government was in the final phase of negotiating the sale of 74% Banka Srpske to an unnamed foreign financial organization. However, in November 2015 the Banking Agency of the RS appointed an interim administration at the bank, before a liquidation procedure was announced in May last year.
