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.
The guaranteed amount shall be determined as follows:
First, all deposits of one depositor of a credit institution on the day of occurrence of the protected event are added up. Due interest (up to the date of protected case in the credit institution) is added to the thus determined amount of the total deposits of one depositor, and the due obligations of the depositor towards the credit institution are subtracted from that total sum.
The resulting amount (remaining) is less / greater than or equal to the guaranteed deposit of €50,000. If the balance is less than $50,000, the depositor is paid the total amount thus obtained. If the balance is equal to or greater than €50,000 the depositor is paid €50,000.
History, mission and aims
History mission and aims
HISTORY
The 2003 Deposit Protection Law established the Deposit Protection Fund, regulated the system for deposit protection and the Fund`s operations. The subsequent amendments in 2005 ensured the alignment with the Directive EC/19/94. Later on, with the adoption of a new Deposit Protection Law in July 2010, deposit protection was largely harmonized with the introduced changes in the principles of deposit protection in the EU and the world.
During the process of accession to the European Union, Montenegro has undertaken, inter alia, the obligation to harmonize its financial legislation with the Directive 2014/49/EU and Directive 2014/59/ EU. This was achieved with the enactment of a package of legal regulations, i.e. by adopting the Law on Credit Institutions, the Law on Resolution of Credit Institutions, the Deposit Protection Law, and amendments to the Bank Bankruptcy and Liquidation Law, which entered into force in early 2020.
On 2 December 2019, the Parliament of Montenegro passed a new Deposit Protection Law that was published in the Official Gazette of Montenegro no. 072/19 as of 26 December 2019, and it entered into force as of 3 January 2020.
MISSION
The Fund`s mission is to ensure the safety of deposits held in banks and efficient and expedient compensation of guaranteed deposits in case of bankruptcy initiated in any bank operating in Montenegro.
OBJECTIVES
Boosting depositors’ confidence in the Montenegrin banking system and protecting depositors from loss of funds in the event of bank bankruptcy. The Fund achieves these goals with clearly defined obligations to depositors, by promoting public confidence in the deposit protection system, and providing funds for the guaranteed deposit protection.
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 credit institutions 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
The Fund will inform depositors through the media about the procedure for realization the right to the payment of guaranteed deposits, as well as about the chosen credit institution that will do the payout, the place and date when the payout will star
