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02/02/2019

The Council of the Central Bank of Montenegro held its fortieth session, chaired by the Governor, Radoje Žugić. 

The current situation in the banking sector was considered at the session and was noted that the banking system is stable and safe with good liquidity and solvency parameters, despite the known situation in the two non-systemic banks. Liquid assets of banks are at a significantly high level, amounting to EUR 938 million as at 30 January 2019. The banking sector achieved a positive financial result in 2018 with net profit at the system level amounting to EUR 28 million. The result would be even better if the two banks did not operate with a loss of about EUR 23 million, which deteriorated the aggregate result. The downward trend in the level of non-performing loans and interest rates continued.

It was pointed out that the situation in Atlas Bank and IBM Bank did not have any negative repercussions on the operations of other banks in the system. The recorded growth of deposits in the period after the introduction of the interim administration in the aforementioned banks confirms that the trust in the banking system is preserved. Specifically, the level of deposits in 14 licensed banks in Montenegro amounted to EUR 3,445 million as at 30 January 2019, which is about EUR 25 million more compared to the amount as at 7 December 2018 when an interim administration was introduced in Atlas Bank and IBM Bank.

It was concluded that the payment of guaranteed deposits takes place efficiently and in accordance with legal procedures and the fact that a large number of depositors decided to place their paid out funds for savings again is being assessed as positive. 

The Council also discussed the Report on the Central Bank of Montenegro Business Activities and Policy Implementation for December 2018. It was noted that the activities of the Central Bank conducted in this period were implemented in line with the Central Bank Work Programme for 2018.

The Council also discussed other current issues under its competence at the session held today.