Prva banka Crne Gore
Prva banka Crne Gore AD is a Montenegrin bank. Formerly known as Nikšićka banka AD, the bank was renamed in March 2007. Prva banka CG assumed continuity from a bank, existing under various forms of ownership, that was founded in 1901.
| Type | Private |
|---|---|
| Industry | Banking |
| Founded | May 3, 1901 |
| Headquarters | Podgorica, Montenegro |
Key people | Tarik Telacevic CEO |
| Products | Financial services |
| Revenue | € 18,90 million |
| € 338.000 | |
| Owner | Aco Đukanović (41,46%) |
Number of employees | 200 |
113 years ago, in 1901, Niksic Saving Bank was founded, as the first bank in Montenegro. It got its name from the city in which it was founded, and which was then writing new and different pages in its history. Beginning of a more progressive society and city was also driving business growth, and foundation of Montenegro brewery "Onogost" in 1896 and First Niksic Saving Bank in 1901 also meant beginnings of industrial and banking capital. At the same time, this was also a key moment which started a new chapter in further development of Niksic industry and society.
Promoter of First Niksic Saving Bank (originally called First Niksic Money Cooperative), and in effect the first bank in Montenegro, was Joco Petrovic, renowned finance expert of the time. At the incorporation general meeting on 6 January 1901, interim board of directors included traders, craftsmen and aristocrats, who voted in favour of document titled "Saving Bank Rules". According to these rules:
"It is the Saving Bank’s goal to develop and support saving and enhance trade and industry in the country by providing favorable credit conditions. Therefore, it will accept and pay interest on saved money from anyone and generate income by providing loans".
The existence of several corporate governing bodies shows how serious the intention to set up the Saving Bank was: Shareholders General Assembly, Board of Directors with management and Audit Committee.
On 5 March 1901, Montenegro’s king Nikola I Petrovic gave his official support to newly founded First Niksic Saving Bank, and the president of the State Council at the time, Bozo Petrovic, endorsed the „Saving Bank Rules“ with his signature.
Saving Bank marked its first anniversary with profit. Although not huge, this profit showed that first bank in Montenegro in its first year managed to overcome many problems, secure survival and created conditions for foundation and development of new units in other business centres.
In 1908, Saving Bank opened new branches outside Niksic, in Velimlje and Savnik, and after Balkan Wars, it opened another one, in Pljevlja. In parallel to its expansion in Montenegro, it worked on developing business connections with foreign banks. However, successful existence of the Saving Bank was somewhat disturbed by Balkan Wars in 1912-1913 and official decision by the state to protect indebted population during the war with Law on Extending Loan Terms for Citizens.
At its 14th shareholders annual general meeting, on 2 March 1914, Saving Bank changed name to Niksic Credit Bank, but it operated under this name very briefly – until the First World War started later in the same year. Niksic Credit Bank continued its operations in 1923, when political and social tensions and currency fluctuations diminished.
After it stopped working during the Second World War, it continued its banking activity late towards the end of 1944 and within the system of National Bank of Yugoslavia.
With separation between National Bank of Yugoslavia and National Accounting Service, new saving bank was formed in Niksic. To support the regional development in Montenegro, in 1961 Communal Bank for Niksic, Savnik and Pluzine was formed. After its transformation, from 1966 the bank existed under a new name: Commercial Bank of Niksic.
In 1967, Montenegro’s banking system was comprehensively integrated into Investment Bank of Titograd. Commercial Bank of Niksic became a branch of the new system and maintained that status until 1978.
In the same year, and in line with the new transformation of the banking system, Niksic Bank was formed, still within the Investment Bank of Titograd, as the main bank in Montenegro. Niksic Bank had significant independence: it constituted its corporate governance and played an important part in investment and other activities of the regional industry.
In 1990, once again there is a consolidation of almost all banks in Montenegro into a united system of Montenegrobanka Titograd. At that point, Niksic Bank loses its independence, although it kept the main branch status. In that period, absence of active support to regional development was a result of moving the financial decision making elsewhere. This also stopped further growth of the bank.
After a long transformation of the banking system, on 28 February 1992, at the bank’s general meeting a decision was made to leave the Montenegrobanka system and operate independently under Niksic Bank dd Niksic name. In June 1995, its founders and shareholders transformed it into Niksic Bank ad Niksic, owned by its shareholders.
This name associated the bank with its local origins and character and in 2007 complete change of its visual identity took place. The bank became Prva Banka Crne Gore (First Bank of Montenegro) – founded in 1901. With these changes, the intention was to maintain the bank’s tradition, but also promote its activities in all parts of Montenegro. In addition, the bank’s headquarters moved to new location – Podgorica.
Nowadays, after 113 years, Prva Banka is a modern financial institution, which represents a mix of experienced banking experts and young, educated people, able to recognise their clients’ needs and help them. Prva Banka follows world trends in banking, respecting regulatory compliance, with always present vision – to remain stable commercial bank, based on Montenegro’s resources and Montenegrin knowledge.
Controversies
It is alleged that the privatization of the bank in 2007 was done in a way that gave family and friends of the Prime Minister of Montenegro, Milo Đukanović, controlling interest on favorable terms. In 2008 the bank, on the verge of collapse, was provided with a €44 million state-funded bailout. A classified audit conducted by PricewaterhouseCoopers in late 2009 and early 2010 showed mismanagement of the bank.[1][2]
References
- Jones, by Liz MacKean and Meirion (May 29, 2012). "Documents tarnish Montenegro's EU bid" – via www.bbc.com.
- "First Bank – First Family". www.reportingproject.net.