From the beginning of March to the end of May, almost eight thousand new loans were approved, worth about 185 million euros, which continued the intensive activity of the banks, it was announced at the session of the Council of the Central Bank (CBCG).
At the session of the Council, held today, it was assessed that the banks responded adequately to the crisis by contributing to mitigating the consequences of the new coronavirus pandemic on the population and the economy.
The Council also assessed that, with the carefully selected measures of the CBCG, banks successfully managed liquidity risk, as well as other risks in their operations, which were significantly increased, as a result of facing the pandemic.
"At the end of May, the banks achieved a net profit that is 36 percent less compared to the comparative period of the previous year, which was conditioned by the formation of additional reserves for loan losses, as well as reduced net income from fees," stated in the statement of the CBCG.
The members of the Council were informed of the results of the analysis prepared by the CBCG, which refers to the impact that the new coronavirus pandemic had on the Internet and mobile payments.
According to data from January to April, the total number of payment transactions made by mobile payment at the end of April increased by 49 percent compared to January.
"The number of payment transactions made by individuals using mobile payment is even 73 percent higher. In the same reporting period, a 14,7 percent increase in the number of new mobile payment users was recorded, and the growth in the number of new users - citizens who have contracted with payment service providers to use an application installed on a mobile phone, of 15 percent, stands out in particular. announcement.
At the session, which was chaired by the Governor of the CBCG, Radoje Žugić, it was assessed that the pandemic, in addition to all the negative consequences it brought with it, contributed to the financial literacy of the citizens of Montenegro and the acceleration of the digital transformation process to which everyone is committed.
The Council adopted the report on the operations and policy implementation of the CBCG for April, in which it was stated that the activities of the Central Bank during this period were realized in accordance with the planned obligations.
At today's session, the Council also adopted a report on the operations of financial service providers as of March 31. It was established that in the microcredit sector in the first quarter compared to the end of last year, total capital grew by 5,12 percent, total loans and receivables by 2,3 percent, and liquid assets by 143,6 percent.
"At the end of March, non-performing loans in this sector were 9,7 percent higher than at the end of last year. As for the business of leasing companies, in the first quarter of the current year, this sector was characterized by stability, a positive financial result and a growth of one percent in assets, 2,4 percent in receivables and 7,3 percent in capital," the announcement states.
In the business of the factoring sector, which consists of only one factoring company, there were no significant changes compared to the end of the previous year.
Today, the Council adopted the CBCG macroeconomic report for the first quarter, where it was stated that the pandemic will have significant consequences that will affect the Montenegrin economy.
Based on the report on price movements for the first quarter, which was adopted by the Council today, it was concluded that inflation in Montenegro, measured by consumer prices, in March compared to December last year, amounted to minus 0,4 percent.
"The average rate of consumer prices in the first three months compared to the same period of the previous year was 0,8 percent, while the prices in March remained unchanged compared to the same month last year," the statement added.
The report states that the model forecast for the end of this year projects inflation in the range of zero percent to 1,2 percent, with a central tendency of 0,5 percent. The CBCG expert assessment is similar to it and indicates that at the end of the year inflation will be in the range of minus 0,2 percent to 1,8 percent, with a central projection of 0,8 percent.
The council also adopted the report on the results of the survey on the credit activity of banks for the first quarter. According to the assessment of the banks, during the next quarter it is expected that the standards, that is, the criteria for the approval of loans for micro, small and medium-sized enterprises and consumer loans will be eased.
Also, banks have the same expectations when it comes to credit terms, that is, the interest rate, commission and fee costs, as well as the required collateral for the population and the economy.
The Council became familiar with the course of the bankruptcy proceedings of Atlas Bank in bankruptcy and the activities of the bankruptcy administration and considered other ongoing issues within its jurisdiction.
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