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28/12/2023

Since the application of the macroprudential measure related to the targeted limitation of the growth of unsecured cash loans to natural persons expires on 31 December 2023, the Council of the Central Bank of Montenegro adopted the Decision Amending the Decision on Macroprudential Measures Related to Retail Loans Granted by Credit Institutions. The adopted amendment extends the application of the mentioned macroprudential measure for one more year, i.e. until 31 December 2024.

The effects of the Decision’s application were first analysed. The analysis determined that, contrary to the system level trends, the level of cash non-purpose loans and the amount of NPLs of these loans is increasing in some credit institutions. It concluded that the continuation of the measure is justified in the following period to limit the space and risks for this type of cash loans placement.