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04/03/2022

Since the beginning of the war in Ukraine, the Central Bank of Montenegro (CBCG) has been monitoring the deposits' stability in individual banks and at the entire system daily. Special attention is paid to deposits of non-residents coming from Ukraine and the Russian Federation.

Daily data submitted by banks to the CBCG from 24 February 2022 (i.e. from the beginning of the war) to 1 March 2022 show that total deposits at the system level increased by EUR 18 million or 0.42%, continuing the previous year's growth. Since the beginning of the war, deposits of non-residents from the areas affected by the war also increased.

Moreover, excluding escrow accounts, total deposits of non-residents from the Russian Federation represented only 2.5% of total deposits at the system level and amounted to over 4.29 billion euros on 1 March 2022. Since liquid assets at the system level amounted to 1.46 billion euros on 1 March 2022, it is more than evident that even the complete withdrawal of deposits of non-residents from the Russian Federation could not jeopardise the system level's liquidity position. Moreover, as there is no pronounced concentration of these deposits with some of the individual banks, the withdrawal of these deposits' entire amount would not jeopardise the liquidity position of any individual bank.

Again, we remind you that the Montenegrin banking system is stable, well-capitalised, extraordinarily liquid, and profitable. Given the above, its resistance is at a high level sufficient to withstand external shocks that might result from the war in Ukraine.