In the previous seven-year period, the Central Bank (CBCG) achieved exceptional work results, despite numerous challenges that caused great uncertainty, it was assessed at the session of the Council of the Supreme Monetary Institution.
At the session of the Council, chaired by Governor Radoje Žugić, the current state of the banking sector in Montenegro and the work of the CBCG in the previous seven-year period were analyzed.
“Members of the Council stated that, despite the challenges that characterized the previous period, which caused enormous uncertainty and emphasized numerous risks, including risks to financial stability, it had exceptional work results. This is confirmed by the reports of international institutions, such as the International Monetary Fund (IMF), the World Bank (WB) and the European Commission (EC),” the announcement states.
As they said, the CBCG, first of all, fully fulfilled its obligation defined by the constitution and preserved the stability of the banking and financial system.
“According to the assessment of the members of the Council, in the previous period, the CBCG successfully resolved all the vulnerabilities of the banking system in a responsible and systematic manner. As a result of this work of the CBCG, the Montenegrin banking sector, which occupies a dominant position in the country’s financial system, is stable, highly liquid and adequately capitalized,” said the CBCG.
All the key balance positions of the banking sector record the historically most favorable values and have a positive trend, with a decrease in non-performing loans, which further improves the quality of bank assets.
With a focus on constant monitoring of bank operations and the implementation of measures aimed at strengthening the resilience of the banking system, the CBCG, according to its representatives, had intensive activities in the previous period to strengthen the regulatory framework.