Serbian authorities Monday detained the owner of a private bank on suspicion he was siphoning money from the lender that was used for some public utility payments during the previous government of former President Aleksandar Vucic .

Alta Bank rose to prominence under the rule of Vucic’s Serbian Progressive Party that was ousted from power in a parliamentary election last week. The bank has handled all electricity payments by millions of users in the capital Belgrade , as well as public parking accounts.

On Saturday, Serbia’s Central Bank revoked Alta Bank’s operating license and launched bankruptcy proceedings to protect the bank’s depositors, saying that its liquidity “has deteriorated significantly” and “could worsen further."

Serbia’s Deposit Insurance Agency, which guarantees deposits of up to 50,000 euros ($56,000), will act as Alta Bank's bankruptcy administrator, the central bank said.

Davor Macura, the bank owner who initially owned an exchange office before becoming a prominent banker, was given…