The Role and the Significance of Supervision through the Experience of the Central Bank of Montenegr

1
The Role and the Significance of Supervision
through the Experience of the Central Bank of
Montenegro

• M.A. Velibor Miloevic
• Deputy General Director for Bank
• Supervision

2
Activities of Supervision in the period 2003-2007

• The strengthening of own efficiency and the
  development of the concept of supervision on risk
  basis,
• The regulating of risk management at the banks
  and the fortification of capital adequacy on the
  basis of the most modern standards,
• The implementation of good practices and
  regulatory established standards of management of
  all risks,
• The policy of bank licensing which contributes to
  the strengthening of security and the growth of
  credits,
• The restructuring of the banking sector and its
  privatization through tender selling, with the
  most significant criteria of quality of the
  investor,
• The efficient acting towards non solid banks
  through the introduction of interim
  administrations, bankruptcy and liquidation .

3
Supervisory Activities in the period 2003 - 2007
4
Growth in Assets, Loans, Deposits and Capital in
the period 2003 2007 (mil. )
5
Growth in Assets, Loans, Deposits and Capital in
the period 2003 2007 ()
6
Share of Assets, Credits, Deposits and Capital
in GDP in the period 2003 2007 ()
7
Banks Ownership Structure in the period
2003-2007 ()
8
Solvency Ratio in the period 2003-2007 ()
9
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10
Micro-credit financial institutions

• In Montenegro, on date 31.12.2007. business
  operations are performed by
• 5 MFI with approximately 120 employees,
• 54 mil. assets,
• 53 mil. approved loans (97 assets),
• 16 mil. total capital,
• 2,5 mil. attained profit.

11
Challenges of Supervision in the following period

• The compliance of the regulation with the changes
  of the system and the changes which are being
  directed by the EU, with the direct participation
  in the work of the working groups and bodies of
  the EU,
• The maintaining of the qualitative growth and the
  development of the banking system in the function
  of strengthening of its stability,
• The maintaining and the additional improvement of
  the institutional capacity that does not lag
  behind the capacities of the banks which are
  being examined,
• The tighter connection with other regulatory
  bodies,
• The efficient acting towards non solid
  institutions, and
• The strengthening of the financial discipline.

12
Thank you!