„We expect growth in the credit activity in this year considering that the liquidity is very good, deposit potential is stable and the competition at the market is stronger. We are additionally encouraged by the fact that interest rates are reduced and, therefore, the banks don’t see credit risk as being very high but moderate“, said Dr Radoje Žugić, in the interview with „Pobjeda“.
„Banking system in Montenegro is stable, liquid and well capitalized. At the end of 2017, the solvency ratio amounted 16,37 % – significantly above the regulatory minimum. The total revenue of the banking system at the end of 2017 was 35,1 million EUR, with an increase recorded in the assets, deposit potential, net loans and claims from banks“, explains Žugić.
He also states that interest rates of banks are constantly decreasing.
„The weighted average effective interest rate on the total loans amounted 6,81 % in December of 2017, less than in 2016 and 2015 (7,45 % and 8,53 % respectively). Similarly, the decrease is recorded in the passive interest rates too. Besides, new banks that entered the market stimulated competition and that, partially, led to the reduction of interest rates. The banks now have greater amount of the available funds thanks to its satisfactory liquidity and growth of deposit“ , he said.
