Montenegro has no any systemic weaknesses in the banking system, said Governor of the Central Bank of Montenegro, Mr Radoje Žugić.
During the ceremony organized to mark the forthcoming holidays, Mr Žugić presented data released by an international institution. He reminded that banks accounted for around 90% of the financial system in Montenegro.
“That means that financial system has significantly improved, and macroeconomic stability went in step with it”, pointed out Mr Žugić.
Reflecting on the year which is coming to an end, Mr Žugić said that it was a tough year for the Central Bank but, according to the objective indicators, it was at the same time maybe “the most successful year ever”.
Key banking parameters are at historical maximum. Assets have increased by 14,1%, loans have recorded a 10,7% increase and banking capital has grown staggeringly (21%).
“Increase in the profitability of banks is also very high. Banks, mostly foreign ones, might be the biggest foreign investors in the state”, said Mr Žugić.
Speaking about key indicators of banking and financial sector in 2019, Governor reminded that poor loans “are now at the lowest level”.
“That’s the sign of high-quality management in the banking system and banks’ assets. In addition, defaulted loans amount to only 2,67% of the total amount, which is impressive”, said Mr Žugić.
However, according to Mr Žugić, really objective indicators of this year’s success are the assessments made by international financial institutions.
“Never before has Montenegro taken the first place in the world on the terms of client protection based on the content and structure of data from credit register. According to the World Bank, we share that position with New Zealand. We are 15th in terms of the ease of granting credit. That means barriers are gradually being reduced and bank funds are being managed adequately”, concluded Mr Žugić.
He said to the journalists that his institution needed the media and emphasized the importance of their cooperation.
Asset quality review has started
Mr Žugić said that Central Bank had very ambitious plans for the period ahead and confirmed it would do its best to fulfill them.
“The most important task for the next year is the review of the quality of the banks’ assets. That process has started already and we are going to monitor how it goes”, said the Governor.
