The systemic risk to financial stability can be characterized as moderate, and it is necessary to continue to carefully monitor the indicators of the stability of the financial system, it was assessed at the session of the Council for Financial Stability. At the session, it was also noted that the total assets of banks at the end of the third quarter were at a historical maximum, amounting to EUR 6.8 billion.
As announced by the Central Bank, the session chaired by Governor Radoje Žugić was attended by members of the Council – Minister of Finance Novica Vuković, President of the Capital Market Commission Željko Drinčić and President of the Council of the Insurance Supervisory Agency Marko Ivanović. At the governor’s invitation, the director of the Deposit Protection Fund, Vojin Vlahović, also attended the session.
Information on financial stability for the third quarter of 2023 was discussed at the session.
– Data from the document indicate a growth of industrial production in Montenegro during the first three quarters of this year of 6% compared to the comparative period of 2022. Retail trade in the same period achieved a growth of 15.9% – it was stated.
Data on collective accommodation for the first nine months indicate a growth of 23.9% in the number of tourist arrivals, i.e. 18.9% in the number of overnight stays compared to the same period last year. The annual inflation rate in September this year was 7.9%.
– As for the fiscal sphere, for the nine months of 2023, a budget surplus of 2.7% of the forecasted annual GDP was achieved thanks to the growth of primary revenues of 20.9% and the decrease of budget expenditures of 6.2% compared to the plan. The current account deficit is still significantly high, although in the first six months of 2023 it was lower by 2.24% compared to the same period last year – data show.
The trends that characterize the banking sector in the third quarter are still positive.
– The total assets of banks at the end of the third quarter of 2023 were at a historical maximum and amounted to EUR 6.8 billion. Bank capital at the end of the third quarter of this year amounted to EUR 808.5 million, which is a growth of 7% on a quarterly basis, or 31.8% on an annual basis. The downward trend of non-performing loans continues, so their share in total loans at the end of the third quarter of this year was 5%. Deposits grew by 4.8% on a quarterly basis, and by 11.2% on an annual basis – the report states.
