In Montenegro, inflation is expected to continue to decline this year, so the expert assessment of the Central Bank (CBCG) forecasts that it will range from three to seven percent, with a central tendency of five percent.
At the session presided over by the governor, Irena Radović, the CBCG Council adopted a report on price stability in the past year, which analyzed the trend of inflation in Montenegro during the previous year and gave a forecast for the current one.
"After 2022, in which the highest annual inflation rate was recorded in Montenegro since the restoration of independence in 2006, during the last year there was a slowdown in price growth," the announcement states.
As for future price trends, inflation is expected to continue to decline this year, so the expert assessment of the CBCG forecasts that inflation this year will range from three to seven percent, with a central tendency of five percent.
Members of the Council considered the annual report on the work of the CBCG last year, in which it was stated that all the activities of the supreme monetary institution were realized in accordance with the planned obligations.
In addition to the analysis of the macroeconomic and banking sectors, the report contains an overview of the CBCG's regulatory and supervisory activities.
It was established that the banking sector in Montenegro was stable and continuously controlled by the Central Bank of Montenegro during the past year.
In addition to indirect and direct supervision over the operations of banks, the CBCG monitored and analyzed potential risks, and acted preventively in the case of identified vulnerabilities in order to preserve financial stability.
"Last year, the banking sector operated profitably, with high liquidity and good capitalization, while all key balance sheet positions - loans, deposits, assets and capital recorded annual growth. In addition to the growth of total assets, a slight improvement was also recorded, i.e. a decrease in the share of non-performing loans," the statement added.
The report highlights the intensive regulatory activities of the CBCG aimed at further harmonizing the domestic legislative framework with the legal acquis of the European Union (EU), and particularly emphasizes the significant contribution of the CBCG to the improvement of the system of detection and prevention of money laundering and terrorist financing, which was also recognized by Moneyval.
The successful financial operations of the CBCG last year, which resulted in net profit in the amount of EUR 16,3 million, were highlighted.
In the report on the stability of the financial system last year, it was stated that systemic risks at the end of last year were moderate and at a slightly lower level compared to the end of 2022.
The document states that the risks are mainly the result of challenges from the international environment, and that the strong growth of the Montenegrin economy of an estimated six percent had a positive impact on the stability of the financial system.
The Council adopted amendments to the Decision on capital adequacy of credit institutions, which redefines the prudential treatment when calculating missing reserves, starting from December 31 of this year.
"The mentioned changes are in the context of EU accession, that is, the closing of negotiation chapters under the jurisdiction of the CBCG and ensuring full regulatory compliance, as well as alignment with good banking and supervisory practices of the EU. "Acknowledging the dynamic reforms in the process of accession, the Decision allows a transition period until December 31 of the following year, in order to gradually adapt credit institutions to this regulatory solution," said the CBCG.
The council also adopted a decision authorizing the payment institution Montenegro Transfers to provide an additional payment service - the execution of payment transactions, including the transfer of funds to the payment account of the user of payment services.
Also, the Council passed a decision revoking the license to work from the microcredit financial institution Credit Plus from Podgorica, because that provider of financial services did not start performing the tasks specified in the license within the legally prescribed deadlines, and in the meantime, the voluntary liquidation of that company was carried out.
The CBCG explained that the Law on Financial Leasing, Factoring, Purchase of Receivables, Microcrediting and Credit-Guarantee Business stipulates that the supreme monetary institution revokes the work permit of a financial service provider who does not start working within six months from the day of issuing the work permit. .
At the session, among other things, the Council considered and adopted the report on the operations of banks in Montenegro for the first quarter, as well as the report on the results of the survey on the credit activity of banks for the first quarter.
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