 A GLIMPSE OF THE CENTRAL BANK OF MONTENEGRO |
The Central Bank of Montenegro is an independent institution and is solely responsible for the monetary policy and for establishing and maintaining a sound banking system and an efficient payment system.
The Central Bank of Montenegro, as specifically defined by the Central Bank of Montenegro Law, represents an independent institution in charge of monetary policy that is grounded on the Deutsch Mark as a monetary unit, means of payment and reserve currency, until introduction of EURO as a uniform European currency.
The introduction of the Deutsch Mark first in November 2000 caused inflation to fall dramatically. Monetary stability has been achieved through low foreign exchange risk, interest rate stability and lower liquidity risk.
The Central Bank of Montenegro administers the monetary policy, however deprived of responsibility for money issuance, as well as crediting the Government. Its role is that of a "last-resort" money lender for banks, offering the guarantee by high-quality securities issued by the member states of the European Union.
The Central Bank of Montenegro disposes of a sole responsibility for issuing authorizations to the banks in the territory of the Republic of Montenegro, as well as for regulating and controlling their banking operations. The right to the foundation of a bank in the Republic is vested under equitable terms and conditions with all domestic and foreign founders.
The Central Bank of Montenegro is given the authority to act as a banker, counselor and fiscal representative of the Republican agencies.
Administration, regulation and control of both the internal and cross-border payment systems represent one of the primary functions of the Central Bank.
It is within the scope of its analytical and statistical functions that the Central Bank of Montenegro is empowered to conduct macro-economic (monetary, fiscal, financial, balance-of-payment's and economic) analyses for the needs of the Republic, and to give recommendations to the Government in respect to the issues within the domain of its economic policy.
The Central Bank of Montenegro is governed by the Council embracing seven members appointed by the Republican Parliament. The President, General Manager and two Deputies in charge of banking operations control and payment system are employed by the Bank on professional and full-time basis, while other three members of the Central Bank of Montenegro Council, proposed by the Government of the Republic of Montenegro, are voluntary |
The Law on Central Bank and the Law on Banks has been passed in November 2000. These laws gave the authority to the Central Bank to strengthen its position as a supervisor and controller of the banking sector.
 Services and duties of the Central Bank |
-bank licensing function
-onsite and offsite control of banks reorganized and is carried out regularly according to international standards (CAMELS).
-monitoring of public debt initiated
-IAS and ISA have been introduced
-collecting and analysing macroeconomic statistics
-buying and selling of foreign exchange
-foreign exchange trading commenced
-granting of loans to the banking sector
-supervision of domestic and international payments system
-fiscal agent of the State
-The Central Bank may not grant loans to the Government of Montenegro.
| MEMBERS OF THE CENTRAL BANK OF MONTENEGRO COUNCIL |
Appointed by Article 14 of the Central Bank of Montenegro Law (Official Gazette of the Republic of Montenegro, No. 52/2000), the Parliament of the Republic of Montenegro, at its first meeting on the first regular session in the year 2001, held on the 15th of March 2001.
| DECREE ON APPOINTMENT OF |
Appointed hereby to the Central Bank of Montenegro Council are the following members:
LJUBIŠA KRGOVIC, M.Sc., Chairman of the Council
MILOJICA DAKIC , M.Sc., General Manager of the Central Bank of Montenegro
GORAN KNEŽEVIC, Deputy General Manager of the Central Bank of Montenegro, in charge of banking system control
RADOJE ŽUGIC, M.Sc., Deputy General Manager of the Central Bank of Montenegro in charge of the payment system
KRUNISLAV VUKCEVIC, member of the Council
MoMCILO CEMOVIC, member of the Council
DIMITRIJE VEŠOVIC, member of the Council
Reg. No. 02 - 519 / 3
Podgorica, 15 March 2001 |
