Montenegro’s banking system is stable and reliable, highly capitalized and liquid and deposits are safe. Central Bank follows liquid position of all banks in the system on a daily basis, representatives said.
Total deposits at the end of March amount to €3.3635 billion.
Coronavirus pandemic has provoked fear and doubt with part of the public, forcing citizens to make food and money supplies.
Central Bank points out that business decisions of companies and liquidity are cyclical.
“CB makes sure that net withdrawal at the level of total deposits is marginal and does not represent potential request for additional effort in providing liquidity”, CB says.
“Liquid assets at the end of the first quarter amounts to €955 million whereas total deposits amount to €3,36 billion. Solvency coefficient, as relative indicator of the adequacy of the capital is high and amounted to 17,73% in the end of 2019”.
Confirmation of liquidity
The main confirmation of liquidity and stability of the system is the fact that CB had no need to activate any instrument for the provision of liquidity.
“The majority of banks have considerable secondary reserves of liquidity”, CB representatives say.
In addition, banks are supported by international bank groups. Their support reflects in providing necessary liquidity lines and arrangements related to purchase of bonds in other currencies.
Finally, CB disposes of mechanisms for providing liquidity in the amount of over €250 million in case of systemic shock.
The pandemic has altered business processes
The fact is that COVID -19 pandemic has altered business process in Montenegrin economy as well as citizens’ everyday life.
In order to act in line with the measures of the National Coordination Body, commercial banks have extended their working hours.
