SARAJEVO (Bosnia and Herzegovina), September 29 (SeeNews) – The banking agency of Bosnia's Muslim-Croat Federation said on Thursday it will revoke the operating licence of Privredna Banka Sarajevo (PBS) as of September 30, as the bank completes its merger into local peer BOR Banka.
All rights and obligations held by PBS are being transferred to BOR Banka, as the legal successor of PBS, the banking agency said in a statement.
BOR Banka will change its name to Privredna Banka Sarajevo following the merger.
"The strategy of bank consolidation in the Federation contributes to improved competitiveness, greater safety in operations and the strengthening of the banking system", the agency noted.
PBS said on Wednesday that is in the final stage of merging into BOR Banka. The new bank will start operating from October 3, PBS said.
The merger of Privredna Banka into BOR will yield a strong and stable bank on the domestic market, PBS added.
To date, PBS's largest shareholder is Bosnian state-controlled cigarette maker FDS with a 17.2% stake, followed by local company Unis Fagas with 10.3% and Bor Banka with 9.9%.
BOR Banka's largest shareholder is Bosnian detonators manufacturer Pobjeda Rudet Gorazde with a stake of 11.4%.