Podgorica, (MINA-BUSINESS) – Representatives of the Central Bank (CBCG) and commercial banks have agreed that the implementation of the new regulatory framework in the field of consumer lending, established by the Law on Consumer Credits, is proceeding with good preparedness of the banking sector.

The CBCG held a series of meetings with representatives of all commercial banks with the aim of providing additional support for the high-quality and consistent implementation of the new regulatory framework in the field of consumer lending.

The meetings focused on presenting banks’ practical experiences, addressing the operational aspects of implementation, and further clarifying open issues.

It was concluded that the implementation of the new legislation is proceeding with good preparedness of the banking sector, along with the expected operational adjustments that accompany implementation. In constructive dialogue, particular emphasis was placed on the importance of the innovations introduced by the law towards further strengthening consumer protection.

“For the first time, the Law on Consumer Credits introduced a statutory cap on the effective interest rate for consumer loans, thereby limiting the total borrowing costs for citizens,” the CBCG stated in a press release. 

In addition, the fee for processing and early repayment of consumer loans secured by immovable property has been abolished, a stricter assessment of creditworthiness has been introduced, and standards of transparency and consumer information have been further enhanced. 

“Consumer protection has improved for those facing financial difficulties, through the creditors’ obligation to take reasonable measures to reach an agreement before initiating enforcement proceedings,” the press release reads.

Within its remit, the CBCG will continue to further enhance cooperation and harmonized commercial practice through proactive expert support in the coming period, and through quality initiatives, thematic meetings, and other forms of communication with the banking sector, with the aim of ensuring the full and consistent implementation of the Law on Consumer Credits and further strengthening consumer protection in Montenegro.