The Council of the Central Bank (CBCG) made a decision today to allocate the net profit of the supreme monetary institution for the past year to the budget of Montenegro and general reserves.
According to data from the financial reports, net profit in the amount of 3,4 million euros was realized last year.
"The council made a decision on the distribution of the CBCG profit for the past year, according to which 50 percent of the net profit is distributed to the budget of Montenegro, and 50 percent to the general reserves. In the last five years, i.e. in the period from 2017 to last year, the CBCG, based on the achieved positive business results, diverted 9,3 million euros to the state budget," the announcement states.
At the session, which was presided over by Governor Radoje Žugić, the Council stated that the trends in business expenses confirm the rational management of the CBCG's resources.
"Namely, operating expenses last year were 3,4 percent lower compared to the plan and three percent lower compared to 2020. As a result of rationalization and continuous internal economy measures, the share of operating expenses in total expenditures was reduced from 93 percent in 2017. to 74 percent in the last year," specified the CBCG.
In the same period, the share of employee costs in total expenses was reduced, from 66 percent in 2017 to 54 percent last year, while the share of all categories of administrative and operational costs was also reduced.
The members of the Council evaluated the achieved business results as extremely positive, emphasizing that the displayed indicators are confirmation of the CBCG's very successful business, despite the difficult business conditions during the Covid-19 pandemic and the fact that the pricing policy for the services provided by the supreme monetary institution has not been changed for years.
"The high growth of the balance sheet managed by the CBCG was particularly highlighted, which increased by over 2011 billion euros between 1,5 and last year, which reached the historically highest level since the bank has been operating," specified the CBCG.
The Council considered and adopted the financial statements of the CBCG for the past year, with the independent auditor's report.
The independent external auditor Ernst&Young expressed a positive opinion on the financial statements and concluded that they truthfully and objectively present the financial situation of the CBCG as of December 31 last year, the results of operations and cash flows for the year ending on that day, in accordance with international financial standards. reporting.
"This is the third consecutive year in which the independent external auditor did not have a single recommendation on the financial operations of CBCG. By the way, this is the first time that this auditing company has audited the financial statements of the CBCG," the statement added.
The Council adopted the CBCG Policy regarding the challenges of climate change.
"This document confirms the commitment of the CBCG to become more intensively involved in the activities that are undertaken at the global level with the aim of reducing the negative consequences of climate change, as one of the sources of systemic risk that can pose a threat to the stability of the financial system," the announcement states.
The policy of the CBCG in relation to the challenges of climate change specifies the institution's future activities, which, among other things, relate to membership in international organizations that deal with climate change and the "greening" of the financial system and the development of professional and analytical capacities for recognition, understanding, assessment and climate risk monitoring
"The CBCG's awareness of the importance of climate change and its commitment to the green economy is best confirmed by the fact that this institution invested in green securities in the previous period," the statement added.
In order to comply with the new Law on Accounting, which entered into force on January 8 this year, the Council adopted the Decision on the content, terms and method of preparing and submitting financial statements of banks.
In order to comply with the Law on comparability of fees associated with consumer payment accounts, switching consumer payment accounts and payment accounts with basic services, which entered into force on January 8, the Council adopted a Decision on criteria for determining credit institutions that are liable to open and maintain payment accounts with basic services.
"According to this decision, credit institutions that, according to the audited annual financial statements for the previous year, have total assets of more than 500 million euros, are obliged to open and maintain payment accounts with basic services for consumers," explained the supreme monetary institution.
In order to fulfill the CBCG's obligation to determine the countercyclical buffer rate for the territory of Montenegro on a quarterly basis, which stems from the Law on Credit Institutions, the Council adopted the Decision on the countercyclical capital buffer rate.
"Based on the results of the previously conducted analysis of relevant trends in the banking sector and the overall economy, the decision determined that the countercyclical capital buffer rate for the second quarter of this year will be zero percent," said the CBCG.
Today, the Council also adopted resolutions that designate nine credit institutions from the system as other systemically important credit institutions (OSV), which are obliged to maintain the prescribed buffer rate.
"The new Law on Credit Institutions recognizes the category of 'other systemically important credit institutions', as those whose business disruption or cessation of business could cause systemic risk in Montenegro," the CBCG reminded.
The criteria used to assess the systemic importance of credit institutions are established by the Law on Credit Institutions and include the size of the credit institution, the importance of the credit institution for the economy of Montenegro, the importance of the cross-border activities of the credit institution and the connection of the credit institution or group with the financial system.
At the session, the report on the operations and policy implementation of the CBCG for January of this year and the quarterly reports on the operations of banks and providers of financial statements for the last quarter of last year were adopted.
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