Montenegro’s bank deposit growth accelerates

Montenegro’s bank deposit growth accelerates
By bne IntelliNews September 21, 2017

Montenegro’s commercial bank deposits grew by 10.9% in August, up slightly from the 10.4% y/y growth recorded in July, central bank (CBCG) data showed.

The IMF has assessed Montenegro’s banking sector as largely stable, but the high level of non-performing loans (NPLs), low provisioning and bank profitability, and weak asset quality were identified as sources of vulnerability.

Growth in August was backed by rising household deposits. In monthly terms, deposits moved up 2.7%, after rising 3.9% m/m in July.

Deposits accounted for 76.3% of total banking sector liabilities as of the end of August, versus 75.9% a year earlier.

The annual growth of corporate deposits remained robust at 14.5% y/y, speeding from 11.5% y/y in July. The total corporate deposit stock reached €1.24bn.

Household deposits were 8.7% higher y/y at €1.6bn, below the 9.2% annual rise in July.