The National Bank of Serbia has passed a decision revoking the operating licence of Raj Bank, whose capital is held by seven companies and consultancies from Bulgaria, Belgrade daily Glas Javnosti reported.

As the bank's exposure to credit risk and liquidity risk remains high, and as it has recorded operating loss and a deterioration of profitability, which jeopardized its operations, the National Bank of Serbia has passed a decision revoking Raj Bank's operating licence, reads a statement of the National Bank, posted on its site.

Data about the bank shows that Finance Consulting, owner of 100% of the Central Cooperative Bank capital, is the major shareholder with 15,01% stake. The other shareholders include Slunchevi luchi trade, Sofia (10,77%), Ital Commerce, Sofia (7,23%), IT Creation, Sofia (6,17%), Bulagrohim, Sofia (5,75%) and Tsitisime Trade, Sofia (5,75%) and Multiex, Sofia (5,75 %).

The sole local shareholder is Udarnik Kommerc company from the town of Pec, Kosovo, which holds 6,2% stake.

The name of the bank is not on the National Bank list of banks authorised for performing international operations.

Talking to the Bulgarian office of BBC the Bank Manager Krassen Kiryakov branded the decision as illegal and unprofessional.

RAJ Bank was founded in March 1994, according to information on the site of the bank.

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