New bank mergers follow: Serbia with four financial institutions less than last year

New bank mergers follow: Serbia with four financial institutions less than last year

A few days ago, however, another purchase was announced, so when the merger of Raiffeisen and Credit Agricole Bank is completed, there will be one bank less.

Considering the announcements, there will be more such transactions in the coming months, Novosti writes.

The Central Bank of Serbia says that the position of clients will not be questioned, and that these changes have not reduced the quality of financial services, but have contributed to greater efficiency and resilience of the banking sector.

At the end of last year, the takeover of Komercijalna banka by NLB was completed, in April the merger of OTP banka with Vojvodjanska banka was completed, whereas MTS bank merged with Poštanska štedionica Bank. The last purchase happened a few days ago.

"Credit Agricole SA decided to accept the offer of Raiffeisen Bank and signed an agreement on the sale of Credit Agricole Serbia and Credit Agricole Serbia Leasing with a local branch of the Austrian Raiffeisen Bank International AG," they told Novosti in Credit Agricole Bank.

"A partner has been carefully selected that is fully in line with the values ​​of our group, such as focus on customers and employees, transparency towards all stakeholders and responsibility towards the local community," the bank said.

The closure of this transaction is subject to the approval of the competent institutions and it is expected that this will happen by the end of the first quarter of 2022. Until then, the bank will continue to operate as Credit Agricole Serbia.

"The National Bank of Serbia (NBS) has been informed by Raiffeisen Bank that it has signed an agreement on the acquisition of 100 percent of the shares of Credit Agricole Bank, but to date we have not received a request for prior consent to acquire ownership, which would allow five percent or more voting rights", the representatives of Central Bank state.

"Any change of ownership in a bank based in Serbia, which would enable five percent or more of voting rights, is subject to obtaining the prior consent of the NBS, which includes assessment of fulfillment of all conditions prescribed by the Law on Banks and bylaws adopted on the basis of this law," they said.

As the authorities explain, the changes in the ownership structure did not reduce the quality of financial services to citizens and the economy, but contributed to a better quality of products and services. Investors' interest in the Serbian banking sector is interpreted as a confirmation of its credibility.

"As for the clients of banks participating in the status changes, their position will not be called into question, since all rights and obligations from the concluded contracts remain unchanged after the merger," the NBS claims. Banks are obliged to inform clients about all changes in a timely manner.

Deadlines

Upon the request of the bank for giving consent for the acquisition of ownership, the NBS decides within 60 days from the receipt of proper documentation.

The NBS decides to give consent for the merger of one bank with another within 90 days from the day of receipt of proper documentation.

Banks operate as separate legal entities until the moment of registration of the status change of the merger with the Business Registers Agency.

Merger and shareholders

When and whether the banks with which the ownership structure will change will be integrated, depends on the shareholders, i.e. the owners of the bank, the NBS representatives claim.

"Our previous consent to acquire ownership in the bank is only a precondition for the transfer of the bank's shares from the current owner to the new one," the NBS added.