The banking sector in Montenegro is recognized as the healthiest segment of the country’s economy, playing a vital role in its growth, according to discussions at the recent International Congress of Accountants and Auditors of Montenegro.
Nikola Fabris, Vice Governor of the Central Bank of Montenegro (CBCG), addressed the persistent issue of illiquidity, which has plagued the Montenegrin economy for decades. He reported that over the past ten years, there has been a notable increase in the number of blocked businesses, with 32% of enterprises facing frozen accounts by the end of August. The sectors most significantly impacted by liquidity challenges include agriculture, mining, energy, and manufacturing.
The Institute of Certified Accountants of Montenegro (ISRCG) noted that the capital of banks in the country stands at approximately €875 million, an impressive figure for such a small economy. Positive trends include rising deposits and a decrease in non-performing loans.
Bratislav Pejaković, Secretary General of the Association of Banks of Montenegro, expressed optimism about the decline in non-performing loans, especially considering the country lacks the advanced financial infrastructure seen in developed EU nations. He highlighted the growth in deposits, particularly from non-residents, as a positive sign.
Maja Krstić, a board member of Crnogorska komercijalna banka (CKB), remarked that this year, deposits have been increasing at a slower rate compared to loans. “This isn’t surprising, as last year we saw a significant rise in deposits. Montenegro continues to navigate an environment of low deposit interest rates,” she explained.
Damir Ivaštinović, a board member of Erste Bank, emphasized that Montenegro provides a favorable business environment for banks, noting the overall success of the banking sector in the region over the past two years. Nataša Lakić, a board member of Hipotekarna Bank, stressed the sector’s importance and reaffirmed the bank’s commitment to enhancing its services.
The final day of the Congress also included discussions on the integration of regulatory standards and sustainable practices in financial and corporate governance.
The International Congress of Accountants and Auditors of Montenegro brought together professionals from the accounting and auditing fields, as well as representatives from relevant state institutions, regulators, the banking sector, academia, and both the public and private sectors. Noteworthy presentations were made by esteemed authors, published in the Congress proceedings.
