Kosovo: Credit Bank of Prishtina ordered to stop its activities
Prishtinë, Mar 14, 2006 - The Board of Banking and Payments Authority of Kosovo (BPK) decided to terminate the operation license to Credit Bank of Prishtina (CBP), and promised the clients to return 95% of their deposited money in this bank.
Justifying the decision, BPK informed that after its on-going review, all banks, except one, resulted to be sound and safe in Kosovo. “We have found out that CBP no longer fulfils the necessary conditions in terms of capital and liquid assets to protect its deposits,” reads a press release issued by the BPK.
"After demanding, without success, shareholders to recapitalize the bank, the BPK could only conclude that the bank was putting the money of its depositors at risk. Even more, enquiry revealed that some board members, shareholders and previous managers strongly contributed to the deterioration of the bank’s financial situation by engaging in highly risky lending operations."
ECIKS / KosovaLive