Deposits and liquid assets at historically maximum level
“Banks in Montenegro are liquid and solvent, and all measures of the CBCG, created to mitigate the pandemic consequences for citizens and the economy, have been implemented efficiently,” was the message at today’s meeting of representatives of the CBCG and commercial banks.
Deposits have increased by about 600 million euros since the beginning of the year and now amount to almost 4 billion euros, reaching a historical maximum. This trend confirms the preserved confidence in the banking system and the supervisors’ work. Liquid assets, amounting to almost 1.5 billion euros, also hit an all-time high. The adverse impact of the pandemic on banks’ operations is reflected in the slight NPL growth, which is still limited due to the timely CBCG measures.
Governor Žugić expressed satisfaction with these banks’ operations, which are even more significant taking into account the conditions in which they were recorded (pandemic corona virus), and the fact that banks participated in the asset quality review process (AQR). The AQR was a very demanding project that required banks’ significant capacity engagement.
The Governor pointed out that “the responsible CBCG approach, careful monitoring of challenges and timely response to risks will, as before, aim at strengthening and preserving the stability of the banking and overall financial system”. He added that it is necessary to continue intensive cooperation with banks in this direction.
The working meeting of the CBCG Governor and the banks’ representatives was an opportunity to discuss the Law on Credit Institutions implementation activities. The supervisors and banks agreed on even more intensive communication to overcome possible challenges that banks face on this issue.