Montenegrin bank Societe Generale will either exit the Montenegrin market or it will merge with a local bank, the central bank governor Radoje Zugic was reported saying in Portalanalitika.me on April 12.
Societe Generale’s local branch has asked the central bank to allow a merger with Crnogorska Komercijalna Bank (CBCG. However, local economists say this would create a monopoly in the banking market.
“At CBCG (the Central Bank) we are analysing the potential repercussions from a merger and will decide accordingly,” Zugic was quoted to have said in Portalanalitika.
Societe Generale was the second largest bank in Montenegro in terms of net profit, which stood at €7.79mn as of end-2016, up 23.5%. Crnogorska Komercijalna Bank’s net profit, however, shrank 60% last year to €2.9mn.
In June, the International Monetary Fund (IMF) warned that low profits make Montenegrin banks’ costs volatile. Many of the 15 commercial banks operating in Montenegro could turn to loss as a consequence of even a modest funding shock, which undermines their capital adequacy. Local banks are likely to use deposit rates as a means to attract clients, which also raises their vulnerability to stressed episodes.
Russian Regional Development Bank (VBRR), a subsidiary of Russia's Rosneft oil major, now controls 99.99% in the capital of troubled "church bank" Peresvet, after acquiring an additional share issue ... more
Cash-strapped Belarus has successfully placed $1.4bn dual-tranche US-dollar-denominated Eurobonds with five-year and ten-year maturities, Reuters reported on June 22, citing unnamed financal sources. ... more
Ratings agency Standard & Poor's (S&P) downgraded Azerbaijani Muganbank's credit ratings from 'B-/B' to 'CCC+/C' with a negative outlook on June 21. In its report, the agency justified its ... more