Meeting with Association of Montenegrin Banks

15/01/2019

The Governor of the Central Bank of Montenegro Radoje Žugić and his associates met with the representatives of the Association of Montenegrin Banks (UBCG) today. 

The main topic of the meeting was the current situation in the banking sector, with special emphasis on the situation in Atlas Bank and IBM Bank, following the introduction of measures by the CBCG.

Taking into account the effects of these measures, it was concluded that they did not have negative consequences for the banking system, characterized by stability and security, perceived through liquidity and solvency indicators, which are above the legally prescribed minimum.

Chief executive officers and other representatives of all banks who attended today's meeting said that the current events at Atlas Bank and IBM Bank did not have any negative repercussions on their business operations. Client confidence is also preserved, as confirmed by the evident increase in deposits in the period following the introduction of the interim administration in the above mentioned banks. 

UBCG representatives welcomed and supported CBCG's measures and activities taken towards vulnerable banks, although they are hard and unpopular. It was pointed out that, through such an approach and action, the stability of the overall system is strengthened in the long run by boosting confidence in the banking sector.

The upcoming payout of guaranteed deposits to IBM Bank customers was also discussed at the meeting today. It was concluded that the Deposit Protection Fund has a sufficient amount of funds for paying out the guaranteed deposits, and that all prerequisites have been met to carry out the payout process efficiently, professionally and in accordance with legal deadlines. 

The extended coordination of the CBCG and UBCG was agreed, in order to monitor the further development of the situation and take actions as partners with the aim of achieving a common goal - preserving the stability of the financial system.