World BankInternational Monetary Fund2016-04-252016-04-252016-01https://hdl.handle.net/10986/24124During September 1-15, 2015 an assessment under the IMF/World Bank Financial Sector Assessment Program (FSAP) was conducted for Montenegro. The mission assessed financial sector risks and vulnerabilities, assessed the quality of financial sector supervision, and evaluated financial safety-net arrangements. As part of the FSAP, the deposit insurance system was assessed against the BCBS-IADI Core Principles for Effective Deposit Insurance Systems (CP) from 2009. The revised IADI CP from 2014, which still have to be adopted by the IMF and the World Bank, have been used as a reference in this assessment. The assessment was conducted by a team of experts from the World Bank and IMF. The assessment has the following main findings: The deposit insurance system in Montenegro is relatively well developed. DPF was established in 2006 and operates under the narrow mandate of a pay-box. It is financed by annual premiums from member banks, supported by a standby credit line with the EBRD and a statutory provision for back-up funding from the government. The current level of funding is sufficient to cover the insured deposits in all small banks. The coverage level is EUR 50,000 per depositor per bank and covers natural and legal persons. With this level, DPF insures 99.26 percent of depositors and 36.38 percent of deposits fully. Since its establishment, DPF has developed much of the infrastructure required to ensure prompt payout of deposits, including payout software to reimburse depositors within fifteen working days after a bank failure and a MoU to support information exchange and coordination with CBM. The deposit insurance system has never been triggered.en-USCC BY 3.0 IGODEPOSIT GUARANTEELINE OF CREDITINSURED DEPOSITDEPOSIT COVERAGEDEPOSITCAPITAL MARKETSLIABILITYBANKRUPTCY PROCEDURESOPHISTICATED DEPOSITORSDEPOSITSDEPOSIT GUARANTEE SCHEMELIQUIDATIONBANKS’ ASSETSFINANCIAL SAFETY-NETINTEREST RATES ON DEPOSITSDEPOSIT PROTECTION FUNDBANK INSPECTIONGUARANTEESDEPOSIT PROTECTION SCHEMEINVESTMENT POLICIESINTEREST RATEBANKING SYSTEMOBLIGATIONS TO DEPOSITORSINSURERINSURED DEPOSIT AMOUNTLIQUIDITYDEPOSIT PROTECTION LAWELIGIBLE DEPOSITSPAYMENTS TO DEPOSITORSFAILURE RESOLUTIONCAPITAL ADEQUACYINSURED DEPOSITORLIQUIDITY SUPPORTINVESTOR COMPENSATIONASSET MANAGEMENTINSURED DEPOSITORSCAPITAL ADEQUACY RATIODEPOSIT INSURERSOBJECTIVES FOR DEPOSIT INSURANCEBANKRUPTCYCENTRAL BANKSCREDITORSINSURANCE SCHEMECREDITORDEPOSIT INSURANCE FUNDCONTAGIONCENTRAL BANKINSURANCE FUNDSFOREIGN DEPOSITSCLAIMS OF DEPOSITORSUNINSURED DEPOSITORSDEPOSIT INSURANCE SYSTEMSINDEBTEDNESSINSURANCE SYSTEMSCREDIT UNIONSFINANCIAL INSTITUTIONBANK BANKRUPTCYMORAL HAZARDDEBTSCONTRACTSCOST OF DEPOSIT INSURANCEINTEREST RATESDEPOSIT ACCOUNTSRECAPITALIZATIONDOMESTIC BANKSFINANCIAL INSTITUTIONSINSURED DEPOSIT AMOUNTSDEBTFINANCIAL CRISESINSURANCE FUNDBLANKET GUARANTEESDEPOSIT INSURANCEINSURERSDEPOSIT AMOUNTSDIVIDENDSDEPOSIT-GUARANTEEUNINSURED DEPOSITSDEPOSIT PROTECTIONRESERVE REQUIREMENTBANKRUPTCY PROCEEDINGSINVESTMENT RISKSBLANKET GUARANTEEFOREIGN CURRENCYINTERNATIONAL FINANCIAL INSTITUTIONSCREDIT LINEDEPOSITORSMANDATORY MEMBERCLOSED BANKINSURED DEPOSITSMEMBER BANKSFINANCIAL STABILITYBANK FAILURESFINANCIAL CRISISGOVERNMENT GUARANTEEINSURABLE DEPOSITPRUDENTIAL REGULATIONSCONTRACTLEVEL OF COVERAGEINFORMATION ON DEPOSIT INSURANCEBANKRUPTCY PROCEDURESFOREIGN BRANCHESFOREIGN BANKSBALANCE SHEETEFFECTIVE DEPOSIT INSURANCECOVERAGE LEVELCORRECTIVE ACTIONSSUPERVISION OF BANKSINVESTMENT RETURNSINVESTMENT POLICYINSURANCE SYSTEMDEPOSIT INSURANCE ARRANGEMENTSDEPOSIT INSURERDEPOSIT INSURANCE SYSTEMLEVEL OF DEPOSITSINSURANCEGROWTH OF DEPOSITSCOVERAGE LIMITSINSURANCE ARRANGEMENTSCOVERAGE LIMITDEPOSIT INSURANCE LAWINVESTORDEPOSIT INSURANCE SYSTEM DESIGNDIRECTIVE ON DEPOSIT INSURANCEFOREIGN DEPOSITINVESTMENT PORTFOLIOCOMMERCIAL BANKSINVESTOR PROTECTIONBANKRUPTCIESCORRECTIVE ACTIONTRANSFER OF DEPOSITSFAILING BANKBANK SUPERVISIONDEPOSITOR PREFERENCEDEPOSIT INSURANCE PURPOSESDEPOSIT INSURANCE SCHEMECREDIT GROWTHBANK BANKRUPTCIESPROBLEM BANKSBANKING LAWASSOCIATION OF DEPOSIT INSURERSLIMITED COVERAGELIABILITIESBANK FAILUREDEPOSIT GUARANTEE SCHEMESCREDIT INSTITUTIONSGUARANTEEFOREIGN BANKDEPOSIT AMOUNTDEPOSITORReportWorld Bank10.1596/24124