Capital used for the establishment of banks, which currently amounts 5 million EUR, will probably increase but Montenegro should remain attractive for new investments, says Secretary General for Banks Association, Bratislav Pejaković.
For setting up a bank in Serbia, 10 million EUR is needed, and in Croatia – 40 million EUR.
“In the process of harmonization with the EU regulations, we suppose that initial capital will also be subject to audit. On the other side, there is also need to attract new investors to start business in Montenegro. We are ware of the size of our market, number of banks, and the fact there are are smaller countries with greater number of banks”, says Pejaković.
He pointed out that Montenegro must be recognized as an ideal area for starting a business.
“Fintech, digitalization, solid telecommunication connections, platforms for different kinds of business, provide good foundations for the investors to establish their business in Montenegro. The amount of capital in case of such players matters less in comparison to conditions of doing business”, says Pejaković.
Pejaković thinks that investment banking has future in Montenegro.
“We have several banks which provide both custody services and services of private and investment banking. That means that there are possibilities of investing in the country and abroad. That is the segment which can develop further and be attractive for the establishment of new players which are knowledgeable in working at global level. Montenegro is not far away from big European centers, only two to two and a half hour of flight, it’s adopting international standards, has moderate climate and sun during the entire year… All this is very important for people who do great business”, said Pejaković.
The fact that the deposit portfolio is higher than the credit, indicates that there is no much space for traditional banking activities of making deposits and granting loans.
Representatives of the Commercial Bank in Montenegro (CKB) think that the stability of banking sector plays the most important role. In the process of consolidation of international markets and capital markets, Montenegro is getting closer closer to them.
“Some banks inn Montenegro already provide such services. CKB was the first to start in 2009 with these services through private banking and investment services. High quality services along with optimal costs structure will provide additional income and, therefore, the sustainability of the profitability of banks”, said the representatives of this bank.