The European Commission (EC) recognized the full commitment of the Central Bank (CBCG) to the process of joining Montenegro to the European Union (EU) and positively evaluated the activities that the supreme monetary institution implemented in the direction of preserving financial stability.
“In the report for Montenegro for this year, the EC recognized the active relationship and full commitment of the CBCG to the process of joining Montenegro to the EU and positively evaluated the activities that this institution implemented in the direction of preserving financial stability and harmonizing the domestic regulatory framework with EU directives,” they announced from CBCG.
According to the CBCG, the EC assessed the banking system of Montenegro as stable and liquid, with strong capital and liquidity reserves, which exceeded the levels before the coronavirus pandemic.
“The report states that banks, through strong credit activity, provide support to the economy, with poor-quality loans falling, while the capital adequacy ratio remains well above the legal minimum,” added the CBCG.
They noted that the EC recommended that risks should continue to be carefully monitored, especially given the rise in global interest rates.
“Recognizing the intensive regulatory activities of the CBCG, the EC points out in the report that the legal framework on payment systems is additionally harmonized with the EU acquis, while, within Chapter 9 – Financial services, it is stated that good progress has been achieved in the area of banking and financial conglomerates”, they said from the CBCG.
The EC report also recognized the activities that the CBCG is intensively implementing in the fight against money laundering and terrorist financing.