Press Releases 2019 - January
15.01.2019 - Meeting with Association of Montenegrin Banks
04.01.2019 - Thirty-Eight Session of the CBCG Council Held
CENTRAL BANK OF MONTENEGRO
Podgorica, 15 January 2019
Meeting with Association of Montenegrin Banks
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.
CENTRAL BANK OF MONTENEGRO
Podgorica, 04 January 2019
Thirty-Eight Session of the CBCG Council Held
The Council of the Central Bank of Montenegro held its thirty-eight 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.