A Sound and Successful Banking Sector Results from Excellent Cooperation between the CBCG and Banks

13/12/2023

“A sound banking system with excellent performance indicators results from continuous and high-quality cooperation between the supervisor and commercial banks” was the message from the meeting of the CBCG management and banks on the occasion of the upcoming holidays.

Summarising the work results in the past seven years, CBCG Governor Radoje Žugić expressed his satisfaction with the condition of Montenegro’s banking sector, characterised by the historically most favourable values of all key balance sheet positions. Data for ten months of the current year show that bank assets amount to 6.8 billion euros, 10.4% more than last October. “Lending growth of 12% (in the same period) opens up space to dynamise economic growth, with a simultaneous capital growth of 27.3% additionally strengthening the achieved system’s stability,” Governor Žugić pointed out. He emphasised that the continuous decline of non-performing loans, currently at 4.8% of total loans, further improves the bank assets quality.

“Transparent, non-selective and absolutely depoliticised behaviour of the CBCG was proven, inter alia, through the AQR (asset quality review), carried out following the methodology of the European Central Bank and by independent external auditors based outside Montenegro, which results confirmed the banking sector’s stability expressed through an adequate capital position and a satisfactory bank assets quality,” Žugić pointed out.

Governor Žugić especially thanked the banks’ representatives for their understanding and support for 14 packages of measures implemented during the COVID-19 crisis, which burden banks bore primarily through income reduction.

The President of the Board of Directors of the Association of Montenegrin Banks and the President of the Management Board of Erste Bank, Aleksa Lukić, thanked for the exceptional cooperation with the CBCG, “without which such results would not have been possible”. Esad Zaimović, President of the Management Board of Hipotekarna Banka and President of the Board of Directors of the Association of Montenegrin Banks in the previous mandate, expressed his gratitude to the Governor and the complete CBCG team for the professional and high-quality cooperation.