Kori Udovički revealed what preceded the collapse of Alta Bank: "Someone got scared after the elections, and the NBS had to react earlier"
After the parliamentary elections, the NBS had to strengthen supervision due to the possibility of capital outflow, says former governor Kori Udovički, emphasizing that the key issues are how Alta Bank ended up operating so poorly and why the authorities did not react immediately.
TL;DR
- Kori Udovički, former NBS governor, believes the NBS should have intensified supervision earlier, particularly after the parliamentary elections, to prevent capital outflow from Alta Bank.
- She identifies dishonest business practices, rather than the elections themselves, as the primary problem.
- Key concerns raised include the unexplained origin and quality of Alta Bank's capital, centralized decision-making, and a fear-based atmosphere within the NBS.
- Udovički assures the public that the broader banking system is stable and that significant effort would be required to trigger a widespread financial crisis.
- She references the European Central Bank's action to suspend voting rights related to Alta Bank's participation in Adiko Bank due to uncertainties about ownership and capital origin.
- Udovički suggests that the change in government after the elections may have caused fear among those involved in questionable practices, initiating the events leading to the bank's crisis.
- She calls on NBS employees to remember their legal responsibilities, irrespective of leadership directives.
- The case of Alta Bank is seen as an individual issue, not reflective of the NBS's overall approach to the banking system.