Thirty-Eighth Session of the CBCG Council Held
04/01/2019
The Council of the Central Bank of Montenegro held its thirty-eighth session on 3 and 4 January 2019, chaired by the Governor, Radoje Žugić.
The Council considered reports on financial and operating conditions of Atlas banka AD Podgorica and Invest banka Montenegro AD Podgorica, in which the Central Bank of Montenegro introduced interim administration on 7 December 2018.
In addition to reports on financial and operating conditions, interim administrators also submitted an action plan containing proposals for resolving the situation in Atlas banka AD Podgorica and Invest banka Montenegro AD Podgorica.
Considering the situation in Atlas banka AD Podgorica and taking into account the risk profile of this bank after the determined amount of losses and the prepared balance sheet of the bank, the interim administrator determined that the further continuation of the bank's operations would be possible with its recapitalization and proposed to conduct the recapitalization procedure in accordance with Article 126a of the Banking Law.
The interim administrator of Invest banka Montenegro AD Podgorica determined that the financial position of this bank is negative, that the solvency ratio of the bank dropped below one quarter of the prescribed level and that the liabilities of this bank are higher than its assets, and proposed revocation of the license.
In accordance with the abovementioned, on 4 January 2019, in accordance with the provisions of Article 129 paragraph 1 items 7 and 9 of the Banking Law, the Central Bank of Montenegro issued a decision on revoking the license for the operation of Invest bank Montenegro AD Podgorica and the decision to open bankruptcy proceedings against this bank in accordance with the provisions of Article 2 paragraph 1 of the Law on Bank Bankruptcy and Liquidation.