Banking system ready for potential challenges

Podgorica, (MINA-BUSINESS) – According to Secretary General of the Association of Montenegrin Banks (UBCG) Bratislav Pejakovic, the Montenegrin banking system is ready to meet all lending-related demands and respond to possible challenges in the future.

“The state of the banking sector is crucial for the growth of gross domestic product (GDP) and the development of the country. Security for bank depositors is of great importance for stability, and it has been further strengthened through the establishment of deposit protection and bank resolution funds,” said Pejakovic.

He explained that any unwanted situation can be managed using the funds from these reserves without burdening citizens and the state budget.

Pejakovic added that the existence of these funds was an obligation for EU countries, but Montenegro recognized the need for their establishment in a timely manner, even though this places a burden on the profit and loss accounts.

He said that the banking system was stable, secure, and well-capitalized.

Pejakovic added that periodic testing of banks, conducted by the Deposit Protection Fund, showed that the system was capable of adequately intervening to preserve the financial stability of the banking system.