Deposits in credit institutions at the end of last year were at a historical maximum and amounted to EUR 5.23 billion, according to the annual report on the work of the Deposit Protection Fund for 2022. This represents a growth of 24.29%.
In the discussion, it was emphasized that during the reporting period, the banking sector continued to make a significant contribution to the recovery of the domestic economy, through intensive credit activity, which was followed by the preservation of safety and stability of this sector, supported by a high level of liquid assets and the growth of deposits.
– The data for the year 2022 indicate stable operations of the Montenegrin banking system, through indicators of liquidity, capitalization and achieved positive financial results in this period. In order to ensure greater safety of deposits in credit institutions, i.e. the stability of the entire financial system, in July 2020, the Fund concluded an agreement with the European Bank for Reconstruction and Development on a “stand-by” arrangement in the amount of EUR 50 million – the report states.
With this contract, as explained, it is possible that, in the case of a possible scenario of the occurrence of a protected case with one of the credit institutions from the banking system, the Fund can use the specified funds for the payment of guaranteed deposits for a period of five years from the date of signing the Contract and with a repayment period of seven year.
– When, in addition to the above, the Fund’s own resources are taken into account, it can be stated that, in case of need, there is a very high guarantee that the Fund can fulfill its basic task of existence – the Government announcement concludes.
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