The problems in Atlas Banka and Invest Banka did not have negative effects on the operations of the other banks in Montenegro and the sector remained stable and secure, Central Bank of Montenegro (CBCG) Governor Radoje Zugic said. Zugic spoke at a central bank council session and assured that the liquidity and solvency parameters of the banking system are stable. He noted that the liquid assets of the banking sector stood at robust EUR938m at end-2018. He also said that the banking sector posted EUR 28mn aggregate net profit in 2018 but the net profit could have been even higher if the two troubled banks did not post an aggregate net loss worth EUR23m. He added that the trend of declining NPLs and interest rates has continued.
Zugic also assured that confidence in the sector remain high, despite the introduction of provisional management in the two troubled lenders. He noted that deposits in the system rose by EUR25m from the introduction of provisional management in the two banks on Dec 7 to EUR3.45bn on Jan 30. He also said that the repayment of guaranteed deposits will be efficient and in line with the legal procedures. He added that many clients have decided to use the repaid funds as deposits in other lenders.