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21/02/2022

The Central Bank of Montenegro (CBCG) continuously performs on-site and off-site supervision over the banking operations in Montenegro, including CKB as a systemically important bank. According to all business indicators, CKB Banka AD Podgorica is the largest Bank in Montenegro. According to the on-site and off-site examination results, its operations are stable, with capitalisation and liquidity ratios significantly exceeding the statutory minimum. Given the above, the potential abuse of official position by some employees, i.e. the potential damage caused to the Bank on this basis, will not materially affect the stability of the Bank’s operations.

In continuous communication with the Bank, the CBCG has been informed about the Bank’s actions concerning the causes and extent of the said abuse.

Banks as companies, and their employees are aware of the obligation to act under the law and possible criminal liability in this case. At the same time, following its powers and responsibilities, the CBCG takes all necessary actions and activities to identify gaps in the organisation and the Bank’s internal control system functioning, which resulted in the stated official position abuse and the Bank’s actions’ adequacy in this case.

This abuse of office is an isolated case, which can not affect customer confidence in the banking operations stability and security, especially given that all potential damage is borne by the Bank.

The role of the CBCG is to ensure through its activities that all commercial banks in Montenegro have sufficient capital to withstand such incidents. So, in this particular case, the CKB management has already announced that it has decided to settle all depositors, which means that no client will suffer damage.