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21/02/2011

The Ninth Meeting of the Council of the Central Bank of Montenegro, as chaired by the Governor Radoje Žugić, was held on 21 February 2011.

The Council discussed the situation in the banking system and concluded that the system is sustainable, yet showing some weaknesses. The system consolidation has improved in relation to the previous period, and the outlook with regard to stability, liquidity and solvency of the banking system is encouraging.

Household deposits increased, thus indicating the credibility of the banking system, whereas past due loans decreased. Non-performing assets also increased, while lending and bank assets declined. Liquidity of banks is remarkably high, while recapitalization of banks amounted to EUR 71.4 million in 2010.

The Council announced that the CBM shall continue with intensive supervisory activities in the upcoming period, aimed at examining additional capital requirements, ensuring ongoing liquidity, creating conditions for a more active lending activity and eliminating the key risks to which banks are exposed in their operations.

The Council discussed the CBM measures for the consolidation of Prva Banka and it concluded that these are fully compliant with the Law, thus extending full support to the CBM in taking further measures to ensure the bank consolidation.

The Council also discussed some issues regarding the Vault operations and the commemorative coins issued by the CBM.