Banking System in Montenegro Stable, Solvent and Profitable

By , 23 Jul 2019, 22:08 PM Business
Banking System in Montenegro Stable, Solvent and Profitable Copyrights: Central Bank of Montenegro Photo

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22 July 2019 - In the first quarter of this year, the banking system was stable, solvent, profitable and highly liquid. Both non-performing loans and interest rates continued to decline, according to the Central Bank of Montenegro. Namely, the Central Bank of Montenegro Council passed today the Decision on Amendments to the Decision on Minimum Standards for Liquidity Risk Management in Banks. The Central Bank of Montenegro explained that the proposed amendments to the Decision refer to its further alignment with the relevant EU regulations and guidelines of the European Banking Authority, reported CdM.

“The main novelty refers to the elimination of collateral – even the one categorized as the firs-class – which has been a requirement for loans. This means that if other criteria for approving a loan classified as ‘non-performing’ are met, it must be categorized as non-performing regardless of the type of collateral used for securing it. The proposed amendments ensure that the data on non-performing and restructured loans in the Montenegrin banking system are completely aligned with the data of the EU member states,” it was stated after the meeting of the Central Bank of Montenegro Council.

The Council considered and adopted the Report on Business and the Implementation of Central Bank of Montenegro Policy for May 2019, and it was noted that the activities of the Central Bank in this period were implemented in line with planned obligations defined by the 2019 Central Bank of Montenegro Program of Work.

In addition, the Central Bank of Montenegro has prepared the Information on introduction of instant payments and further development of payment activities in Montenegro, along with a comprehensive description of an intention to additionally modernize Montenegro’s payment system.

At this session, the Council also discussed other relevant issues that fall under its competencies.

Read more news about business in Montenegro at TMN's dedicated page.

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