FAQ

In a case of protected event of credit institution, the Deposit Protection Fund guarantees the compensation of deposits up to 50,000 euros per depositor per credit institution, regardless of the number and type of deposits in that credit institution.

All credit institutions licensed by the Central Bank of Montenegro are automatically included in the deposit protection system, which means that deposits in all credit institutions in Montenegro are insured.

The Deposit Protection Fund is responsible for insuring deposits in credit institutions, and in the protected event of credit institution, it guarantees depositors the payment of deposits up to the guaranteed amount and within the stipulated period.

Deposit insurance is free for all depositors – private individuals and legal entities (both resident and non-resident). Credit institutions are required to pay a deposit insurance premium to the Fund.

The amount to be paid is determined by adding up the balances on all accounts held by a depositor in the credit institution and deducting their due liabilities on the day of the protected event.

Deposits of following categories of depositors are protected:

• natural persons – residents/non-residents
• legal persons – residents/non-residents

1. deposits by insurance and reinsurance undertakings, in line with the law governing insurance and reinsurance business;
2. deposits by public authorities and local government authorities and/or other form of local self-government;
3. deposits by occupational health care and pension and disability insurance schemes, in line with the law governing the mandatory health, pension and social insurance;
4. deposits by personal pension funds and their management companies, in line with the law governing personal pension funds;
5. deposits by investment funds, in line with the law governing the capital market;
6. deposits by investment funds and their management companies, in line with the law governing the capital market;
7. deposits by other credit institutions, regardless of their head office, made out to their name and held for their account;
8. deposits by financial institutions within the meaning of the law governing the taking up and pursuit of business of credit institutions;
9. deposits by persons holding, either directly or indirectly, 10% or more capital or voting shares in that credit institution;
10. deposits by persons who are members of managing bodies and/or standing bodies of the credit institution that have exercised these tasks as at the protected event date or in the period of 12 months preceding the protected event date;
11. deposits by a superordinate credit institution, affiliated and subsidiary undertakings with which the credit institution, in relation to which the protected event occurred, comprises a group;
12. deposits by persons responsible for the auditing of the credit institution’s financial reports over the past 36 months prior to the protected event occurrence;
13. deposits by collective investment undertakings in line with the law regulating the capital market;
14. deposits arising out of transactions in connection with which there has been a criminal conviction for money laundering or terrorism financing;
15. deposits by persons specified in the Central Bank report to have contributed to deterioration of financial position of the credit institution;
16. anonymous deposits and/or deposits the holder of which has never been identified before the protected event occurrence (non-nominative deposits);
17. obligations arising from securities and other financial instruments issued by a credit institution or which payout is guaranteed by the credit institution in relation to which the protected event occurred;
18. claims of clients of investment undertaking, clients of a credit institution on whose behalf the credit institutions provides some investment services, and clients of asset management company when this company provides investment services, which are included in the investor protection scheme pursuant to the law regulating the capital market;
19. instruments of depositors of a credit institutions in relation to which the protected event occurred and which are included in own funds in line with the law governing the taking up and pursuit of business of credit institutions.

The credit institution in relation to which the protected event has occurred shall submit to the Fund without delay, but no later than within three working days following the protected event date, both on paper and in electronic format, data, and other documents necessary for the calculation and payout of guaranteed deposits as regulated in Deposit Protection Law.

The Fund is obliged to make guaranteed deposits available to all depositors no later than within  7 working days following the protected event date.

The credit institution holding protected deposits of depositors of merged or acquired credit institution informs its depositors about the expiration date of the right to separate coverage at least 30 days before the expiration date.

Deposits representing a temporary high balance are considered deposits resulting from:

• real estate transactions relating to private residential properties,
• transactions that are linked to: marriage, divorce, retirement severance pay, dismissal, invalidity or death;
• the payment of insurance benefits or compensation for criminal injuries or mistakes made by judicial authorities, government authorities, public administration bodies, and local government authorities.

A decision verifying the fulfilment of requirements for the payout of deposits representing the temporary high balance is passed by the Director General of the Fund.

Example: A depositor has sold a residential property and his/her claims total 80,000 euros.

In this case, the Fund will compensate the depositor the amount of 80,000 euros. So this would be 50,000 euros of the maximum coverage plus 30,000 euros of a temporary high balance.

Example: A depositor`s total claim is 60,000 euros. In this case, the Deposit Protection Fund compensates the depositor the amount of 50,000 euros, within the legally prescribed period. The depositor then claims the uncollected amount of the deposit (10,000 euros) from the bankruptcy estate of the credit institution, in accordance with the Bankruptcy and Liquidation Law.