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05/12/2022

At its meeting, the Council of the Central Bank of Montenegro (CBCG) adopted the Central Bank of Montenegro Policy in 2023. The document contains the institution’s business objectives stemming from the obligations defined by the Central Bank of Montenegro Law, and determines guidelines for core activities to be implemented next year. The policy specifies, inter alia, that the CBCG will monitor the effects of introduced monetary and macroprudential measures next year. It will implement other monetary and macroprudential policy instruments to preserve the banking sector’s soundness and financial stability, if necessary.

The Council adopted the CBCG’s Financial Plan and the Investment Plan for 2023, which provide the conditions for achieving the CBCG’s objectives and performing its functions. Both documents were prepared following the principles of rational and responsible operations.

At the meeting, the Council also discussed the Report on Bank Lending Survey Results for Q3 2022. The Report pointed out that lending standards and conditions for the economy and the household tightened during this period. Banks’ expectations show a continued tightening of lending policy for the economy and the population in Q4 2022, as explained by the perception of increased risk due to the current global economic situation. Banks also expect lending conditions’ tightening for both sectors, i.e. an increase in interest margins, commissions and fees, stricter requirements in terms of collateral, and a maturity date shortening.

The Council adopted the Decision on Interim Measures to Mitigate the Negative Impact of the Communicable Disease Covid-19 Epidemic and the Situation in Ukraine on the Financial System, to specify the measures that will remain in force until further notice.