Serbia shuts Alta Bank after financial deterioration as prosecutors investigate foreign transfers and Russian-linked lender’s operations

Serbia’s central bank has revoked the operating licence of Alta Bank, a lender widely used by Russians in the country, citing a sharp deterioration in its financial position and liquidity as prosecutors investigate possible transfers of large sums abroad.

The National Bank of Serbia said Alta’s financial condition had “significantly deteriorated” despite previous supervisory measures and warned of further deterioration that could endanger depositors. Banking operations have been suspended and the lender is heading into bankruptcy proceedings.

The closure came less than a week after a student-led opposition movement defeated the party of longtime Serbian leader Aleksandar Vučić in parliamentary elections, ending 14 years of rule by the Serbian Progressive Party.

Serbian officials told the Financial Times that Alta customers withdrew large amounts and transferred significant sums abroad in the days following the election.

Organized-crime prosecutors have asked authorities to investigate Alta’s operations, officials at the National Bank of Serbia and potential outflows and transfers abroad. The incoming Student List has also called for a broader investigation into the bank and regulators.

Alta became particularly important to Serbia’s Russian expatriate community after Moscow’s 2022 invasion of Ukraine. It was among the few Serbian banks willing to provide both personal and business accounts to Russian nationals and companies and facilitated transfers to and from Russia.

The bank’s deposits grew more than fivefold from their prewar level by the end of last year.

Alta had also faced scrutiny from the European Central Bank over suspected money laundering. An ECB investigation raised concerns about whether the Serbian group could adequately verify the legitimate origin of deposits.

The bank is owned by Davor Macura, a Serbian businessman whose financial group expanded rapidly in recent years and developed significant business links with state-owned companies.

People familiar with the situation told the Financial Times that Macura attempted to leave Serbia for Moscow after the election. Macura has not publicly responded to that report.

Alta customers have reported frozen accounts since the shutdown. Serbia’s deposit insurance system covers eligible deposits of up to €50,000 per depositor, with reimbursements due after bankruptcy proceedings formally begin.