World BankInternational Monetary Fund2016-04-252016-04-252016-01https://hdl.handle.net/10986/24126Financial infrastructure is the underlying foundation of a country’s financial system. It comprises all institutions, the rules, and standards of all the systems which enable financial intermediation. The quality of a country’s financial infrastructure determines the efficiency of intermediation, the ability of lenders to evaluate risk and of borrowers to obtain credit, insurance, and other financial products at competitive terms. For instance, the efficient and smooth functioning of the payment, and securities settlement systems facilitates the discharge of financial obligations and the safe transfer of funds across distances and institutions; hence, it support the stability of the financial system. This technical note contains the assessment of the national payment and settlement systems (NPS) infrastructure in Montenegro. The assessment was undertaken in the context of the IMF and World Bank (WB) joint Financial Sector Assessment Program (FSAP) mission to Montenegro during September 1-15, 2015. The assessor was Gynedi Srinivas of the World Bank’s Payment Systems Development Group. The assessor will like to thank the counterparts in Montenegro for their excellent cooperation and hospitality during the mission.en-USCC BY 3.0 IGOAUCTIONMONETARY POLICYHOLDINGACCOUNTINGDEPOSITSPAYMENT SERVICEDEFAULTSCONFLICT OF INTERESTVALUATIONINTERESTOPTIONREMITTANCEGROSS SETTLEMENT SYSTEMREVENUESLIQUIDITY RISKLOANFRAUDSBORROWERSBANKRUPTCYCENTRAL SECURITIES DEPOSITORYINSTRUMENTSMARKET INFRASTRUCTURESPOST OFFICE NETWORKMARKET PARTICIPANTSAMOUNT OF CAPITALLIENBENEFICIARYCURRENCYFINANCIAL INSTITUTIONSETTLEMENT SYSTEMSCOMMERCIAL BANKSETTLEMENT DATESETTLEMENT OF TRANSACTIONSINVESTMENT FUNDSMONETARY FUNDFINANCIAL INSTITUTIONSDEBTMARKETSSETTLEMENTDEPOSITARY AGENCYBANK CREDITRESERVE REQUIREMENTLEGAL FRAMEWORKMARKET TRANSACTIONSINTERNATIONAL FINANCIAL INSTITUTIONSBROKERSTRANSACTIONSMARKET ECONOMYIPODEPOSITORSAUCTIONSINTERNATIONAL STANDARDSELECTRONIC AUCTIONTRANSPARENCYMARKET CAPITALIZATIONMARKET CONDITIONSTURNOVERFUTURELENDER OF LAST RESORTTREASURY BILLSEXCHANGESCAPITALIZATIONDEBT SECURITIESISSUANCESHAREST-BILLSLOCAL CURRENCYMONEY MARKETSSUPERVISION OF BANKSINDIVIDUAL SECURITIESSECURITIESTREASURYFINANCIAL INFRASTRUCTURECREDIT RISKINSURANCESHAREHOLDERSECONOMIC DEVELOPMENTGOVERNMENT BONDSACCOUNTING STANDARDSCENTRAL DEPOSITORYCOMMERCIAL BANKSCOUPONPOST OFFICESSUPERVISORY AGENCYINSURANCE COMPANIESMATURITIESREMITTANCESFINANCIAL SYSTEMSACCOUNT HOLDERPAYMENT SYSTEMSSHORT-TERM LIQUIDITYSTOCK EXCHANGESACCOUNT HOLDERSTARIFFSDEPOSITCAPITAL MARKETSREGULATORY FRAMEWORKSETTLEMENT OF TRADESCREDIT CARDSSTOCKREGULATORY STANDARDSINTEREST RATEMATURITY DATEEXCHANGEPROPERTY RIGHTSBANKING SYSTEMBALANCE OF PAYMENTSPAYMENT SYSTEMLIQUIDITYBANK ACCOUNTCORPORATE SECURITIESSECURITIES TRANSACTIONSCDSSECONDARY MARKET TRANSACTIONSFINANCIAL STATEMENTSBONDSCLEARING HOUSEREMITTANCE SERVICESTAXINCOME TAXMARKET INFRASTRUCTURECENTRAL BANKSRESERVEBENEFICIARIESPENSIONLENDERSETTLEMENT OBLIGATIONSREGULATORY AUTHORITIESCENTRAL BANKMATURITYEXCHANGE COMMISSIONSECURITIES MARKETCONTRACTSPAYMENT OF PRINCIPALGUARANTEE FUNDTRADINGPAYMENT ORDERSLENDERSLOANSSETTLEMENT SYSTEMRESERVESFINANCIAL SYSTEMAMOUNT OF COLLATERALCASH TRANSFERSFINANCEFOREIGN CURRENCYBROKERTAXESCUSTODYGOVERNMENT SECURITIESEQUITYTRANSACTIONSECURITIES MARKETSFRAUDFINANCIAL STABILITYGOVERNANCE ISSUESPAYMENT OBLIGATIONMARKET TRADESPENSIONSRETURNSCONTRACTBIDSPROPERTYPROPERTIESVALUE PAYMENT SYSTEMSBALANCE SHEETDEFAULTMARKETBANK ACCOUNTSCLEARING HOUSESCORPORATE BONDSTRADING SYSTEMSECURITIES EXCHANGESECURITYFINANCIAL MARKETDEBT INSTRUMENTSSTOCKSINVESTMENTSTOCK EXCHANGEBONDHUMAN RESOURCESSHAREINTERNAL AUDITCOLLATERALPAYMENT SERVICESFINANCIAL INFORMATIONREMITTANCE SERVICETARIFFBIDMONEY MARKETPAYMENT_SERVICEPROFITOUTSTANDING AMOUNTRISK MANAGEMENTCHECKCOUPON PAYMENTSINSTRUMENTSECURITIES LAWSECONDARY MARKETCOLLATERAL AMOUNTPOST OFFICEINTERNATIONAL SETTLEMENTSJOINT STOCK COMPANYCREDIT INSTITUTIONSGUARANTEEBOOK ENTRYCORPORATE GOVERNANCEReportWorld Bank10.1596/24126