Meeting with the World Bank team
17/09/2019
The Governor of the Central Bank of Montenegro Mr. Radoje Žugić, PhD, and his colleagues met today the World bank team, led by the World Bank Country Manager for Bosnia and Herzegovina and Montenegro, Mr. Emanuel Salinas and Mr. Mario Guadamillas, Manager of the World Bank’s Finance, Competitiveness and Innovation practice for Europe and Central Asia.
The meeting was an opportunity to discuss the progress in activities implemented by the CBCG, with the view to ensuring the second part of the program of development guarantee from the World Bank to Montenegro (PBG2).
Governor Žugić has informed the World Bank representatives about the current situation in the banking system. He has pointed out that the positive trends from previous years have continued this year, and that all the key parameters of banks' operations have recorded growth. "As of end of August this year, the banks' assets, amounting to 4.5 billion euros, are at the historic high, as well as their liquid assets, amounting to 1.1 billion euros. From the end of 2018, with 13 banks in the system, total loans increased 10.7%, capital 18.2%, and deposits 9.9%, which confirms the strong confidence in the banking system," Governor Žugić has said and added that the vulnerabilities from the previous period have been significantly reduced. Non-performing loans have recorded continuous decline and currently stand at 4.75% of total loans.
The Governor has also informed the World Bank representatives about the CBCG's activities related primarily to the implementation of the Asset Quality Review (AQR), modernization of the payment system and alignment of the national legislation with the EU acquis.
The World Bank Country Manager for Bosnia and Herzegovina and Montenegro, Mr. Emanuel Salinas and World Bank team have pointed out that the CBCG has selected adequate priorities for the forthcoming period and welcomed the intention to conduct the AQR, as this is an effective tool to identify and address any additional vulnerabilities in the banking system.
The World Bank is working together with the CBCG and the Ministry of Finance of Montenegro towards completion of the PBG2 operation, which aims, among other aspects, to strengthen the stability of the financial system, through improvement of the legislative framework and reduction of potential vulnerabilities.