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Meeting with the World Bank

On 28 September 2018, the Association of Montenegrin Banks held a meeting with the representatives of the World Bank for the region, Cevdet Cagdas Unal, Senior Financial Sector Economist and Denis Mesihović, WB Office in Podgorica. Several topics were discussed at the meeting, among which on the situation in the banking sector, which showed high liquidity, solvency and capitalisation at the system level in the previous period and on the ongoing projects, dynamics and cooperation with institutions, noting also qualitative implementation of the WB policy-based guarantees. In addition, views were shared on more qualitative support of the Association to targeted group of clients, like SMEs, and it was also highlighted that the liquidity of banks shows that funds exists but adequate application is needed for their disbursement, which implies more qualitative training of managers in the economy. Accompanied by better defined requests of clients, banks could provide faster and more qualitative services to its clients if systemic banks are better protected in the collection of collateral, if financial statements of the clients are more qualitative, and if disputes initiated by banks are resolved faster. In this area, experiences from the developed countries are welcomed and they will be respected through the new implementation.

The Association was also informed that the new NPL definition is being drafted in accordance with the EU definition. Drafting of the amendments to the Bankruptcy Law, Banking Law, Deposit Protection Law are underway in cooperation with the Bundesbank, De Nederlandiche Bank and Croatian National Bank through the Twinning Programme. Draft laws will provide an opportunity to comment on their implementation which should give optimum frameworks for entire financial system.