New European Commission’s Report Commends the CBCG’s Operations


In its Montenegro 2023 Report, the European Commission (EC) has recognised the CBCG's active relation and full commitment to the process of Montenegro’s accession to the EU and assessed its activities on safeguarding financial stability and harmonising local legislation with the EU directives as positive.

The EC assessed the Montenegrin banking system as stable and liquid, with “strong liquidity buffers exceeding pre-COVID-19 levels”. The Report states that strong lending activity of banks provides support to the economy, while non-performing loans declined and the capital adequacy ratio significantly exceeded the statutory minimum. The EC recommended close monitoring of risks, in particular in view of rising global interest rates.

Recognising the intensive regulatory activities of the CBCG, the EC Report noted that “the legal framework on payment systems has been additionally harmonised with the acquis communautaire”. Moreover, the Report states that good progress on bank and financial conglomerates was achieved within Chapter 9 – Financial Services. The Report has also recognised the CBCG’s proactivity concerning sustainable finance through recognised activities on adopting the policy of reducing the adverse climate change impact on the financial system and its greening.

The Report has recognised the intensive activities of the CBCG in fighting against money laundering and terrorist financing. It noted that, in addition to exercising the supervisory function and maintaining good cooperation with other relevant authorities, the CBCG contributed to improving the knowledge and capacities by providing continuous training to institutions - the reporting units under the Law on the Prevention of Money Laundering and Terrorist Financing.

The section concerning Chapter 32 – Financial control stated that “Montenegro’s legislation on protecting the euro against counterfeiting is in place” and added that “the country has the necessary structures for technical analysis and classification of counterfeit money.” The Report also stated that the “Decision on authenticity and fitness checking and recirculation of euro banknotes and coins has been fully harmonised with the relevant Decision of the European Central Bank”.

Motivated by the positive assessment from the latest report, the CBCG remains fully committed to meeting the obligations from the negotiation process and thus fully contributes to maintaining the country’s strategic objective – Montenegro’s joining the EU.