May 14 (SeeNews) - The resolution of problems in troubled Atlas Banka [MNG:ATBA] and Invest Banka [MNG:IBMN] did not have negative effects on the banking sector and the financial system of Montenegro, the central bank has said.
Following measures taken to restructure Invest Banka and Atlas Banka, the positive trends that characterise the banking system continued and banks remained the most stable segment of Montenegro's economy, the central bank, CBCG, said in a statement on Monday.
Last year, the total assets of banks in Montenegro grew by 5.38%, loans increased by 8.47%, total deposits of banks went up 5.88%, while total capital increased by 0.28%, it noted.
The central bank placed Atlas Banka and Invest Banka under its temporary administration in December due to their poor financial condition after an audit showed that the capital of the two lenders did not meet the minimum risk requirements.
CBCG launched insolvency proceedings against Invest Banka in February after the interim administrator found that the lender's financial position is negative, its solvency ratio is below one-quarter of the prescribed level and its liabilities exceed its assets. The central bank also opened insolvency proceedings against Atlas Banka in April after a public call for the recapitalisation of the lender drew no bids.
The combined market share Atlas Banka and Invest Banks is just above 6%, CBCG governor Radoje Zugic said in December. A total of 16 banks are active in Montenegro.