The 82nd CBCG Council Meeting Held
29/01/2016
The CBCG Council met today for the 82nd meeting chaired by the Governor Milojica Dakić.
The Council adopted the Governor’s Report for November 2015, which stated that the activities of the Central Bank in this period were carried out in line with the obligations planned under the Central Bank of Montenegro Work Programme for 2015. The Council analysed and assessed the impact of potential risks, stemming from the macroeconomic environment and within the financial system, on the position of the financial stability and concluded that the financial system is stable, whereas the level of systemic risk is moderate.
Statistics for the past eleven months indicate favourable annual level trends in majority of the economy sectors: industry, tourism, forestry, construction, and retail trade. The FDI inflow was significant due to an increase in inflow arising from investment in domestic companies and banks and reduced withdrawal of foreign investments in relation to the previous year. The Council concluded that the level and trend of public debt growth along with the real sector illiquidity represent the key macroeconomic weaknesses.
The Council concluded that the stability of the banking sector is, in addition to growing liquidity and solvency, also a result of the improved asset quality due to a decline in past due and non-performing loans. Financial result on the system level is positive. Banks' lending and deposit interest rates recorded monthly and annual decline. In November 2015, prices recorded a monthly decline of 0.2%, while the annual inflation rate was 1.4%.