14 January 2019 - Secretary General of the Association of Banks of Montenegro, Bratislav Pejaković, said that the potential danger from money laundering “does exist”, but that the banking system was capable of defending any such attempt.
“We must be aware of the fact that our market is so small and, therefore, it is not interesting for some major transactions that are very visible in a small world. That we can read about some big banks from the developed countries is something we are not familiar with. However, there is a slight danger, but I think we are capable of defending ourselves,” Pejaković said.
Considering the indicators, such as deposits, liquidity, solvency, from the systemic point of view we can say that measures imposed by the Central Bank on Atlas and IBM did not affect work of individual banks in Montenegro, nor did it worsen the systemic indicators.
“We support every attempt to find optimal solutions for the recovery of the Atlas Bank and IBM bank as soon as possible,” says Pejaković.
He reminds that deposits by a client of up to 50.000 EUR are protected.
“There are several levels of reaction and establishment of sustainability of regular operation and stability of financial position of a credit institution. Bank reserve is described in the balance sheets of the bank. Apart from the quality placement of credit assets, a bank also disposes of property, and minimum reserves at the Central Bank used for maintaining the liquidity of an individual bank. What is defined as a loss and what affects the capital and solvency, does not necessarily mean that it will not be solved partially or totally, sometime in the future? What seems problematic today, does not have to be a loss,” concluded Pejaković.
Source: Cafe del Montenegro
