Governor of the CBCG meets the executive directors of commercial banks

31/05/2018

Today, the Governor of the CBCG and his associates met the chief executive officers of banks operating in Montenegro.
 
The meeting was organized with a view to analysing the recorded banking operation indicators, and to discussing possible improvements of the cooperation between banks and the supervisor, as well as further strengthening of the banking sector’s safety and soundness.

In his opening statement, Governor Žugić said that the financial system significantly improved over the past year, as confirmed by reports of international financial institutions, adding that this trend also continued in 2018. Deposits grew 14.8% in the annual comparative period, as confirmed by the strong confidence of clients in the banking system. Furthermore, liquidity, solvency and profitability indicators recorded positive trends, with particularly encouraging data confirming stronger credit support directed towards the corporate sector. “Business policies of all banks have to focus on supporting the real sector and valorising our resources,” pointed out Governor Žugić.

During the meeting, the banks expressed their readiness to continue their close cooperation with the CBCG aimed at further reducing the level of non-performing loans, as well as, inter alia, to decrease interest rates additionally.

The meeting continued with the discussion on improving the functioning of the Credit Registry, which would contribute to improved data quality on debts of legal and natural persons, and thus to a better and more reliable banks’ assessment of the risks of individual debtors. To wit, based on the responses of banks on the previously conducted survey, the CBCG has taken a number of activities aimed at improving the content, availability and the quality of the Credit Registry data. Some improvements will be operational as of July this year, while significant improvements will apply as of January 2019, upon the entry into force of the Decision on the Credit Registry, which draft has been prepared. The CBCG presented the text of the draft Decision to banks so that they would be able to provide their comments.

Since the Credit Registry is a very important service, through which banks receive the data they use when assessing individual debtors’ risks, it was concluded that the CBCG would continue to focus on this issue in the coming period. During the meeting, it was also concluded that, based on commercial banks’ inputs, the measures for Credit Registry’s continuous improvement would be initiated timely.

After the meeting, the Governor of the CBCG, Radoje Žugić, and the Chairman of the Board of Directors of the Association of Montenegrin Banks, Esad Zaimović, gave media statements, which can be downloaded here.