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19/11/2018

Regarding the increased media interest on the condition of two vulnerable banks, which is primarily aimed at circulation boosting, we point out that neither the Governor nor the CBCG shall make public any irregularity disclosed during the examination or measures imposed against the supervised banks as this would imply the breach of the Banking Law and of the Rulebook on Secrecy. Instead, the CBCG will endeavour to recover vulnerable banks by performing its supervisory function in a responsible and professional manner and thus contribute to the stability of the banking sector and the financial sector in general.

In reference to the audit reports, upon receiving annual financial statements accompanied by external auditor’s report with balance as at 31 December 2017 for all banks, the CBCG will publish them on its website. This is in line with the former practice to publish financial statements for all banks simultaneously, and not individually. We also use an opportunity to inform the public that the unaudited quarterly financial statements of all banks operating in Montenegro are being published on the CBCG website, including the latest one with balance as at 30 September 2018.

We also remind that the Decision on public disclosure of data and information by banks provides that banks are obliged to disclose annual financial statements, with an opinion produced by an external auditor. Moreover, the Banking Law stipulates that banks have to publish a shorter version of the external auditor’s report in at least one of daily newspapers distributed on the territory of Montenegro. Therefore, we bring to notice that 14 of 15 banks operating in Montenegro fulfilled this obligation. As specified above, the public is aware of the prepared external auditors’ opinions on financial statements with balance as at 31 December 2017 for 14 banks.

The CBCG also acted responsibly regarding the non-submission of audited annual financial statements by one bank. Specifically, after initiating and holding several meetings with engaged auditor of the subject bank, based on the additional information that we expect, it will be assessed whether, according to the Banking Law, the auditor will be granted approval for performing future audits of banks operating in Montenegro. Moreover, pursuant to the Law on Audit, the CBCG will submit all relevant information on auditor’s performance in this case to the responsible body for further procedure. If it determines that the bank is responsible for non-submitting of audited financial statements in the deadlines stipulated by the law, the CBCG shall impose all statutory measures against the bank.