Podgorica, (MINA-BUSINESS) – The Council of the Central Bank (CBCG) has adopted amendments to a decision on minimum standards for credit risk management by banks, abolishing collateral as a criterion for the classification of loans.
The CBCG says in a press release that the amendments to the decision provide its further harmonization with relevant European regulations and guidelines of the European Banking Authority (EBA).
“If other conditions have been met for its classification as a nonperforming loan, the loan must be classified as such regardless of the type of collateral that has been provided to secure the loan,” the CBCG says.
The amendments also ensure full comparability of data on the nonperforming and restructured loans in the Montenegrin banking system with the data available in the European Union member states.
The CBCG has also prepared a report on introduction of instant payment and further development of payment services in Montenegro, according to which this type of payment is necessary in order to create preconditions for technological innovations in the field of payment operations, boost competition, open the market to new players, reduce the costs of payment and the use of cash and card payment. Longer version of article is available on a link MINA ENGLISH SERVIS
