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Governance

The Central Bank is governed by the Council of the Central Bank of Montenegro. The members of the Council are the Governor, three Vice-Governors, and four members who are not the Central Bank employees. The members of the Council who are not the Central Bank employees are Milorad Jovović, PhD and Ruždija Tuzović.


The manner and requirements for the appointment of the Governor and members of the Council of the Central Bank of Montenegro are prescribed under the Central Bank of Montenegro Law. The legislation prescribes that members of the Council are appointed by the Parliament, with the Governor being appointed at a proposal to be put forward by the President of Montenegro, the Vice-Governors at the proposal of the Governor, and the Council members who are not employed by the Central Bank at the proposal of the working body of the Parliament responsible for financial affairs; the Council members are appointed for the period of six years and may be appointed to serve not more than two consecutive terms of office.


A member of the Council must be a person having Montenegrin citizenship, holding at least VII1 level of the national qualifications framework, enjoying personal repute and having at least ten years of professional experience in in the field of economy, banking, finance or law, provided that the Governor must have at least five years of management experience in the aforesaid fields.


The same law prescribes, inter alia, the incompatibility of functions, the prevention of conflict of interest, the removal from office before the expiry of term of office, as well as the right to judicial protection in case of the removal from office of a Council member.


In exercising its governance function, the Council:


  • determines policies of the Central Bank regarding the execution of its functions and the pursuing of its objective;
  • decides on the use of monetary policy instruments and other measures;
  • adopts regulations and other acts necessary for the exercising of its functions and the pursuing of its objective in line with its powers granted under this and other laws;
  • decides on the Central Bank’s membership and participation in the work of international financial institutions;
  • adopts the Statute of the Central Bank;
  • decides on licensing and revoking licences and approvals for operation to credit institutions, providers of financial services and payment systems, as well as licensing and revoking licences of payment service providers and e-money institutions, in accordance with the law and regulations adopted on the basis of the law;
  • decides on the introduction of protective and other measures for the purpose of maintaining stability of the financial system as a whole;
  • defines the financial crisis management plan covering the Central Bank’s areas of competence;
  • adopts reports and recommendations to be submitted to the Parliament and the Government;
  • determines the investment strategy for managing the international reserves, and
  • performs other activities as defined by the Law and the Statute of the Central Bank.


The regulations passed by the Council are published in the Official Gazette of Montenegro.


The Council decides on matters within its competence at meetings to be convened by the Governor once a month, but not less than ten times during a calendar year.


After the membership of Montenegro in European Monetary Union (EMU) the Council shall:


  • pass regulations and other legal documents for pursuing the objectives and executing tasks or functions of the Central Bank based on the powers specified by this and other laws, the Statute of the ESCB and of the ECB and other relevant regulations of the European Union;
  • decide on the Central Bank’s membership and participation in the work of international financial institutions;
  • decide on the Central Bank’s membership in international monetary institutions, subject to the approval of the ECB;
  • pass the Statute of the Central Bank;
  • under the law, decide on issuing licences and granting authorisations to and withdrawing licences and authorisations from credit institutions, payment institution to provide payment services, an electronic money institution to issue electronic money, the provision of financial lease operations, factoring, purchase of receivables, micro-lending and credit and guarantee operations, and from payment systems;
  • decide on the introduction of safety and other measures for the purpose of maintaining the stability of the financial system as a whole;
  • pass guidelines for the management of a portion of foreign reserves that have not been transferred to the ECB;
  • adopt reports to be submitted to the Parliament and Government; 
  • perform other activities specified in this and other laws and the Statute of the Central Bank.


The Council’s powers after the membership of Montenegro in the EMU are regulated in Article 87f of the Central Bank of Montenegro Law.


Rules of Procedure of the Central Bank of Montenegro Council