Milorad Dodik, President of Republika Srpska, drew public attention with a dramatic threat directed at banks operating in the territory of the entity. He issued an ultimatum to the banks: within three months, they must return 150 million convertible marks of citizens’ deposits, which he claims were withdrawn to support the economies of Austria and Germany.
“You have three months to return that money to RS, because that is our money. If you don’t return it, we will shut you down! You think we can’t do it? You’ll see that we can,” Dodik said unequivocally.
Interestingly, the banks to which this threat was directed have so far not made any public statements nor have they responded to Dodik’s remarks. Additionally, there are no indications that any funds have been returned. Neither Dodik nor anyone from his administration has commented further on the matter since the initial announcement, which further raises doubts about the seriousness of the threat itself.
If Dodik truly plans to carry out his threat, he has only two days left to present the plan for closing banks in RS and to inform the public about it.
However, the current passivity on this issue gives the impression that this threat—like many before it, will likely not be carried out.
According to economic analyst Svetlana Cenić, the president of Republika Srpska has neither the legal nor constitutional authority to issue binding orders to banks regarding the return of funds, nor to shut them down. Such serious actions fall exclusively under the jurisdiction of the Banking Agency of RS.
Independent experts also warn of the potential serious consequences of any bank closures: such a move would severely undermine trust in the financial system, could lead to the freezing of private and business funds, and might trigger an economic crisis in the region—with potential negative effects for the Austrian and German parent companies of the banks operating in RS.
Written by our correspondent D.I.
