Purpose of this site is to provide the basic information with respect to procedure of formation of a commercial bank in Montenegro (start-up).

In Montenegro, formation, management, operations and supervision of banks and micro-credit financial institutions and credit unions, and supervision of operations of parties involved in credit and guarantee operations are regulated with the Banking Law.

A commercial banks are allowed to perform the following banking operations:

• Issue guarantees and assume other off balance sheet obligations.
• Purchase, sell and collect claims (factoring, forfeiting, etc.).
• Issue, process and record payment instruments.
• Domestic and foreign payment operations pursuant to the regulations governing the payment system financial leasing.
• Operations with securities in accordance with the law governing the securities.
• Trade on its own behalf and for its own account or for the client’s account with foreign payment funds, including exchange operations and financial derivatives.
• Safe keeping operations.
• Development of analysis and giving of information and advice on creditworthiness of legal persons and entrepreneurs, and on other issues with respect to the business operations.
• Offering safe deposit boxes.
• Activities that are part of banking operations, activities that are of ancillary nature in relation to the operations of that bank, and other activities directly related to the operations of that bank in accordance with the bank bylaws.

The bank may also perform, with the prior approval of the CBoM, other operations in accordance with the Banking Law.

Process of formation of a bank in Montenegro is controlled by the Central bank of Montenegro (the CBoM).

For the purpose of understanding of the subject matter, process can be observed throughout the following phases:

• Obtaining of a banking license, by means of participating in the administrative proceeding before the CBoM.
• Incorporation and registration of the bank, by means of creation of the legal entity in a form of a joint stock company.
• Corporate governance setting up, by means of creation of a legal environment for lawful start of the business operations.
• Business operations start-up, by means of performing of inland and international payments, accepting of deposits, extending of loans etc.
• Risk management system creation, by means of designing of documentary infrastructure, implementation of regulations, measuring of respective risks etc.