Governor of the CBCG meets executive directors of commercial banks

18/09/2019

The Governor of the CBCG and his team met the executive directors of commercial banks operating in Montenegro and the representatives of the Association of Montenegrin Banks today.

The topic of the meeting was the current situation in the banking sector and the upcoming activities on the implementation of the Asset Quality Review (AQR) of the banking sector in Montenegro. 

In his introduction, Governor Žugić said that there are positive trends in liquidity, solvency and profitability ratios in the banking sector. “With the best ever level in assets of 4.5 billion euros, we particularly note the increase in capital of 18.2% (from December 2018 to August 2019), directly contributing to the banking sector’s soundness and resilience”, noted Governor Žugić. Non-performing loans and interest rates continued declining, while profit at the system level amounted to 46 million euros as at end-August 2019.

Another topic of the meeting was the implementation of AQR of the banking sector, scheduled for 2020. The banks commended the CBCG’s proactive approach in timely informing of banks, which leaves sufficient time to prepare for the upcoming activities. The attendees agreed that the implementation of AQR would contribute to more adequate valuating of collaterals in assets classification procedure and in provisioning for potential losses in banks, making the banking sector more sound and resilient.

Since the project is highly demanding concerning its financial and professional capacities, the CBCG and banks agreed on an intensive cooperation as well as on direct exchange of experience between individual banks to resolve all potential challenges easier and faster.