The Banking and Payment Authority of Kosovo, which is the body supervising the financial sector of the province, revoked with immediate effect the license of Credit Bank of Pristina, and closed all branches and offices of the lender as of March 13. The management of CBP was dismissed and a receiver was appointed. BPK substantiated the moves with the fact that the lender did not meet the capital and liquidity requirements in the province.

The shareholders of the bank did not increase its capital as requested and BPK decided that the savings of depositors were at risk. The investigation of CBP showed a number of irregularities in the activities of the management, which additionally worsened the performance of the lender and threatened its clients, BPK said in its statement. It also guaranteed repayment of 95% of the savings in the bank. CBP recorded 25% year-on-year decline in assets last year to €42.7 million at end-2005 with the deposits by customers falling by 27.2% y/y to €35.9 million.