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15/02/2019

The Financial Stability Council held its forty-fifth meeting today, chaired by Radoje Žugić, the Governor of the Central Bank and the Chairman of the Council. All other members of the Council attended the meeting: Darko Radunović, Minister of Finance, Uroš Andrijašević, President of the Council of the Insurance Supervision Agency, and Zoran Djikanović, President of the Capital Market Commission. Upon invitation, Predrag Marković, the Director of the Deposit Protection Fund attends the Council meetings. 

Considering the current situation in the banking sector, the Financial Stability Council concluded that the measures taken by the CBCG towards IBM Bank and Atlas Bank were fully adequate and justified. Also, different scenarios for resolving the situation in Atlas Bank were analysed, based on which it was concluded that the implementation of any would have no repercussions that could jeopardize the financial system. The expectation is that through the interest of reputable investors, the recapitalization of this bank will be successfully completed, which would, in that case, have the potential to continue operating in the market. 

Director of the Deposit Protection Fund, Predrag Marković, informed the Council members about the pay out of guaranteed deposits for depositors of Invest Bank Montenegro in bankruptcy. So far, 13 million euros of guaranteed deposits were paid out to 545 depositors of this bank, which represents 58.5% of the total liabilities the Fund should pay out. Positive is the fact that the reimbursed depositors of the IBM Bank predominantly re-deposit their savings, i.e. the money remains within the Montenegrin banking sector, which points to confidence of depositors in the banking sector. 

The latest data on trends describing the banking sector were considered at today’s meeting. The growth of key balance sheet positions was recorded in January 2019, so in the monitored one-year period assets grew by 6.37%, loans by 10.19%, deposits by 5.59% and capital by 7.05%. It was concluded that the liquidity and solvency indicators at the aggregate level were above the prescribed minimum.

Bearing in mind the aforesaid, the Council concluded that individual vulnerabilities in the system are treated in a responsible and professional manner and that there are no spill overs of negative effects on systemic stability.

At today's meeting, the Council discussed the Information on the state of financial stability for the fourth quarter of 2018, and the current issues under the competence of the Council.

Considering the domestic macroeconomic environment, it was noted that positive developments marked 2018. Significant growth was recorded in industrial output sector, construction, tourism and transport.

The members of the Council also discussed other issues under its competence.