Central Bank of Montenegro
Encyclopedia
The Central Bank of Montenegro (Montenegrin
: Centralna Banka Crne Gore) is the central bank
of Montenegro
. The mission of the central bank is to establish and maintain a sound banking system and monetary policy
.
in November 2000. With its establishment, the Republic of Montenegro obtained an independent authority responsible for monetary policy, and establishment and maintenance of sound banking system and efficient payment system operations.
The Central Bank started to operate on March 15, 2001, when the Montenegrin Parliament adopted the Decision on Appointment of Members of Council of the Central Bank of Montenegro.
Montenegro unilaterally adopted the euro, so it is a third country that does not participate in the European System of Central Banks
or ECB meetings. The bank just tracks the ECB policy, making the later the central bank of Montenegro de facto for economic and monetary purposes.
Montenegro does not mint issue or print euro coins or notes and imports them from other countries that are part of the eurozone.
Montenegrin language
Montenegrin is a name used for the Serbo-Croatian language as spoken by Montenegrins; it also refers to an incipient standardized form of the Shtokavian dialect of Serbo-Croatian used as the official language of Montenegro...
: Centralna Banka Crne Gore) is the central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Montenegro
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
. The mission of the central bank is to establish and maintain a sound banking system and monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
.
Overview
The Central Bank of Montenegro was established on the basis of the Law on Central Bank of Montenegro, passed by the Parliament of the Republic of MontenegroParliament of Montenegro
The Parliament of Montenegro is the unicameral legislature of Montenegro. The Parliament currently has 81 members, each elected for a four-year term. The current Speaker of the Parliament is Ranko Krivokapić, while the deputy speakers are Željko Šturanović and Rifat Rastoder...
in November 2000. With its establishment, the Republic of Montenegro obtained an independent authority responsible for monetary policy, and establishment and maintenance of sound banking system and efficient payment system operations.
The Central Bank started to operate on March 15, 2001, when the Montenegrin Parliament adopted the Decision on Appointment of Members of Council of the Central Bank of Montenegro.
Montenegro unilaterally adopted the euro, so it is a third country that does not participate in the European System of Central Banks
European System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
or ECB meetings. The bank just tracks the ECB policy, making the later the central bank of Montenegro de facto for economic and monetary purposes.
Montenegro does not mint issue or print euro coins or notes and imports them from other countries that are part of the eurozone.
The mission
The CBM is not an issuing bank, and it has the following powers and responsibilities in the performance of its functions determined by law:- To issue and withdraw licenses to banks and financial institutions, to regulate and supervise their operation and conduct bankruptcyBankruptcyBankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
and liquidationLiquidationIn law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
proceedings over banks and financial institutions in the Republic. - To give loans from its reserves to licensed banks in the Republic, under the conditions determined by law.
- To prescribe and undertake measures, and regulate and supervise payment system, settlement and inter-bank clearing in the Republic.
- To carry out and supervise the domestic and international payment system.
- To act as a banker, advisor and fiscal agent of the bodies and authorities of the Republic.
- To buy and sell currencies and precious metals on its own behalf or on behalf of the Republic.
- To buy and sell securities on the secondary market issued by the Republic, European UnionEuropean UnionThe European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
member states, or other states designated in the Central Bank regulation. - To make regular macroeconomic analyses, including monetary, fiscalFiscal policyIn economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
, financialFINANCIALFINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...
and balance of payment studies of the Republic economy, and to give recommendations in the area of economic policy to the Republic. - To prepare and participate in preparation of laws and other regulations in monetary, foreign currency and banking system, in accordance with international standards, including determination of reserves for various types of deposits.
- To provide banking services in favor of foreign governments, foreign central banks as well as international organizations and other international institutions in which Central Bank of the Republic are members.
- To take deposits from banks, state agencies and organizations.
- To establish and maintain accounts for the needs of state bodies and organizations, local and foreign banks, international financial institutions and donor organizations.
- To prescribe manner of operations for dealers and banks in foreign exchange transactions, set limits on foreign exchangeForeign exchange marketThe foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
positions of dealers and banks and perform their control. - May be owner and manage one or more payment systems, including one real time gross payment system.
- May manage a real time net payment system.
- To provide banknotes and coins in quantities appropriate to satisfy the needs of financial transactions.
- To perform other operations determined by this and other laws.
External links
- (Montenegrin) Central Bank of Montenegro official site