Press Releases 2017 - August
31.08.2017 - Thirteenth CBCG Council Session Held
CENTRAL BANK OF MONTENEGRO
Podgorica, 31 August 2017
Thirteenth CBCG Council Session Held
The Council of the Central Bank of Montenegro held its thirteenth session today, chaired by the Governor, Mr Radoje Žugić, PhD.
The Council adopted the Governor`s Report on Central Bank of Montenegro Business Activities and Policy Implementation for June and July 2017, the Quarterly Report on Banks and MFI`s Operations as well as the Report on Monitoring Payment Systems in 2016 at the session held today.
The Governor`s Report on Central Bank of Montenegro Business Activities and Policy Implementation for June and July 2017 noted that the activities of the Central Bank in this period were carried out in line with the commitments planned under the Central Bank of Montenegro Work Programme for 2017. The total assets of banks amounted to almost EUR 4 billion at end-July 2017, recording an increase of 9.8% annually. Total loans approved amounted to EUR 2.6 billion at end-July 2017, showing an increase of 7.4% compared to the same period of the previous year. The downward trend of non-performing loans continued during June and July, which amounted to EUR 215.5 million at end-July, representing 8.2% of total loans. Also, the weighted average lending and deposit interest rates continued the same trend. The average weighted effective lending interest rate on total loans at end-July 2017 was 7.03%, which was a decline of 0.03 percentage points compared to end-June. During the first seven months of this year, the banks showed a positive financial result in the amount of EUR 19.1 million.
According to the Quarterly Report on Banks and MFI`s Operations, the banks' operations in the first two quarters of 2017 were characterized by the growth of all four key balance sheet items - assets, loans and receivables, deposits and capital. The solvency ratio at the aggregate level was 16.64%, which is over the regulatory minimum (10%).
The Council also adopted the Report on Monitoring Payment Systems in 2016, presenting activities that were undertaken in the previous year for the purpose of implementing international standards in national regulations, as well as activities in monitoring payment systems. It was noted that the CBCG payment system functions steadily, recording a high availability level.
The Council also discussed other current issues from the domain of its competence at today's session.