Tuesday, 15 January 2019 16:00

Committee on Economy, Finance and Budget holds its 63rd Meeting

At its 63rd meeting, the Committee on Economy, Finance and Budget held a consultative hearing on: “State of play in the banking sector of Montenegro”, attended by representatives of the Central Bank of Montenegro.

In his introductory remarks, the Governor of the Central Bank of Montenegro, among other things, reminded that the basic goal of the Central Bank of Montenegro was financial stability and notified the Committee that: the banking system indicators in 2017 and 2018 were positive, as well as that the financial stability risks in 2018 were moderate in intensity; there was a high degree of liquidity and solvency of banks present and that the systemic risks were shifted to the level of individual banks, as well as that a full degree of financial stability was achieved and that there was a trend of deposit growth. Furthermore, he pointed out that on 7 December 2018 temporary management was introduced in two banks.

During the hearing, the Committee members had the opportunity to obtain the information on trends in the banking system of Montenegro; information regarding the introduction of temporary management in the “Atlas bank” JSC Podgorica and “Invest bank Montenegro” JSC Podgorica; expectations regarding various possible scenarios in relation to this; role of the Deposit Protection Fund; cooperation with the Central Bank of Montenegro and the IMF, etc.

Following the discussion lasting several hours, and bearing in mind the need to monitor the state of play in this field, the Chairperson of the Committee announced the holding of the Committee meeting which the representatives of the Deposit Protection Fund would attend.