Main features of the deposit protection system in Montenegro
Deposit protection includes deposits of private individuals and legal entities, residents and non-residents in all banks in Montenegro. All types of deposits opened in the name of the owner are protected, including giro accounts, current accounts, and savings deposits. Exemptions from deposit protection are specified in Article 6 paragraph 2 of the Deposit Protection Law, in accordance with the prevailing norms in the world.
In the event of a bank bankruptcy, the Deposit Protection Fund guarantees the compensation of up to 50,000 euros per depositor, regardless of the number and type of deposits in that bank.
The amount to be paid out is determined by deducting a depositor`s due liabilities to the bank from the sum of balances on all accounts that a depositor has with the bank on the day of opening the bankruptcy.
The guaranteed amount is determined as follows:
First, all deposits of one depositor in the bankrupt bank are added up, including any accrued interest (up to the bank bankruptcy date). Then all due liabilities of the depositor to this bank are deducted from the total sum. The resulting balance can be lower, higher or equal to the guaranteed deposit of 50,000 euros. If the resulting balance is less than 50,000 euros, the depositor is paid the total amount available sum up to the amount of the guaranteed deposit. If the balance is equal to or exceeds 50,000 euros, the depositor is paid 50,000 euros, and the remainder from the bankruptcy estate.
Reimbursement of the guaranteed deposit from the Fund’s resources starts no later than 15 business days following the protected event date, i.e. the day of declaration of bank bankruptcy, with the possibility of extending this deadline for another 10 business days at the request of the trustee in bankruptcy.
The Fund will inform the depositors via the media about the procedure for exercising their right to the compensation of guaranteed deposits, as well as about the selected payout bank, and the place and date of commencement of the payout.
All banks licensed by the Central Bank of Montenegro are included in the deposit protection system in Montenegro, including branches of Montenegrin banks operating abroad.
The Deposit Protection Fund is responsible for insuring deposits in banks. In the event of a bank bankruptcy, the Fund guarantees to depositors the compensation of deposits up to the guaranteed amount specified by the law and within the prescribed period.
Deposit Protection Law (“Official Gazete of Montenegro” No. 72/19)
Decision on the manner of verifying the fulfilment of requirements for determining deposits representing a temporary high balance (“Official Gazete of Montenegro” No. 73/20)
Rulebook on informing depositors and potential depositors about the deposit protection system (“Official Gazete of Montenegro” No. 73/20)
Decision on detailed conditions, manner and procedure of the guaranteed deposit payout (“Official Gazete of Montenegro” No. 073/20)
Special Power Of Attorney 1(“Official Gazete of Montenegro” No. 073/20)
Special Power Of Attorney 2(“Official Gazete of Montenegro” No. 073/20)
Objection To The Calculation Of Guaranteed Deposit (“Official Gazete of Montenegro” No. 073/20)