Banking is undoubtedly one of the most regulated industries in the world. While some of the regulation might seem technical, the risk of abuse is so high that the interests of depositors must be protected.

“Banks are a moral hazard. A bank, especially a large one, is prone to moral hazard because of the fact that its troubles could be trouble for the whole economy,” said Milenko Popović, professor at the Montenegro Business School, told OCCRP. “Then typically it is likely that they will be rescued.”

And that was exactly what happened. According to Central Bank reports, First Bank of Montenegro broke the law, was mismanaged and even acted against healthy business practice, leading to a huge liquidity crisis. Finally taxpayers paid for the cost – by bailing out the bank with €44 million.

The list of violations is long:

Read the whole text here.