Media Statement of the Central Bank of Montenegro, Commercial Banks Operating in Montenegro, Deposit Protection Fund and Association of Montenegrin Banks
08/02/2019
The meeting was held today in the Central Bank of Montenegro, which was attended by the representatives of the CBCG, banks’ CEOs and other representatives of banks, secretary general of the Association of Montenegrin Banks and director of the Deposit Protection Fund.
Reviewing the current situation in the banking sector, the participants noted that the banking system is characterised by the stability, safety and high liquidity, which is confirmed by the banks’ performance indicators.
In period since the introduction of the interim administration in Atlas Bank and IBM bank (7 December 2018), all key balance sheet positions at the system level have recorded growth. Thus, deposits of 13 remaining banks increased by 28 million euros in this period, while liquid assets grew by 6 million euros. If two banks that are under the CBCG measures (Atlas Bank and IBM Bank) are excluded, solvency ratio at the system level amounted to 17.47% according to the latest available data. The share of non-performing loans in total loans amounted to 5.44% at the end of 2018, while the share of loans that are over 90 days past due was 3.09%.
These indicators confirm that the banking system is absolutely stable and the attempts to undermine it, through speculations and delivering incorrect information to the public failed. Condemning such intentions, and with a view to further contributing to the strengthening of the system, more frequent communication between the CBCG and banks has been agreed as well as closer cooperation among the banks. “We are monitoring the most important indicators of the operations of banks on daily basis, and each bank is obliged to notify the CBCG on potential contingencies”, highlighted Governor Žugić.
The pay-out of the guaranteed deposits was also discussed at the meeting. It was concluded that the process is carried out efficiently and a significant portion of paid out deposits remains within the system. Based on the data of banks, over 40% of compensated depositors redeposit their money with the paying banks, while the remaining portion of deposits has been returning to the system through savings deposits placed with other banks.