All banks will be able to increase their share capital from the existing EUR 5 to 7.5 mil in case the Law on Credit Institutions proposed by the Central Bank of Montenegro (CBCG) is adopted, Bratislav Pejaković, Secretary General of the Banks Association, told Pobjeda daily.
The capital of the banks in our system ranges from EUR 7.9 to 115 mil, whereas the share capital in Croatia amounts to EUR 5.4 mil, noted Pejaković.
Banks’ capital represents their basis for providing support to citizens, as by the existing regulations, they are allowed to give up to 25 per cent of their own funds to an individual or a group of connected individuals.
“Solvency ratio is at 17.47 per cent, while the legal minimum threshold is 10 per cent, which indicates leveraged recapitalization but still the CBCG insists on its continuous strengthening depending on the strategy and profit risks every bank has been facing,” stressed Pejaković, adding that a bank’s solvency or trade weighted balance sheet and off-balance sheet positions against the capital best indicate stability of a bank.
