Banking Sector
BANKING SECTOR
Total Bank Assets and Liabilities
Total assets and liabilities of banks at the end of June 2013 amounted to € 2,915 million recording a an increase of 0,9% than in the previous month and by 3,8 % higher in comparison to December 2012. At the end of June 2013, in the structure of banks assets, net loans accounted for the main share (84,3%), followed by cash and deposits with central banks (9,4%) while the rest 6, 2% is related to other asset items. When it comes to banks liabilities, deposits are accounted for the main share (68,9%) while capital share in banks liabilities for June was 13,9%, borrowings made up 12.5% and other banks’ liabilities items 4.6%. Graphic 1: The structure of total banks’ assets and banks’ liabilities, in %
Source: Bulletin of Central Bank of Montenegro, November 2012, December 2012 and January 2013
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Banks total capital amounted to € 402.1 million at the end of June 2013 recording a monthly growth of 0,3%, and growth of 40.6% in relation to December 2012.1
Deposits Total banks’ deposits amounted to € 1, 64.7 million at June 2013 which is a slight increase of 0,2 % in comparison to previous months while they were 1.6 % higher in comparison to December 2012. In total deposits’ maturity structure, time deposits accounted for 70.3%, while demand deposits accounted for 29.7% of total deposits. while insignificant portion referred to escrow account funds.
Household deposits Households’ deposits amounted to € 1,164,7 million at the end of June 2013, being 0.2% higher in comparison with the previous month, while in relation to December 2012, households’ deposits increased by 1,6%. In the maturity structure of 1 The reason for significant increase lies in the introduction of provision accounts for estimated losses under regulatory requirement which records provisions for written off loans from the off-balance and cancelled provisions for on-balance sheet items.
households’ deposits, time deposits made up 70,3%, demand deposits 29,7%, while an insignificant portion referred to escrow account funds. Loans Total banks’ loans and other receivables amounted to € 2,457,5 million at the end of June 2013 which is a monthly decrease of 0,8% and an increase of 4,9% in relation to December 2012. Interest Rates In June 2013, the weighted average lending nominal interest rate amounted to around 9, 18% which is a decline of 0,41 percentage points in comparison to the previous month. The weighted average deposit effective interest rate (deposit interest rates) amounted to around 10,30% which is a decline of 0,30 percentage points in comparison to the previous month. ■ Graphic 2: Interest rates, period-end, in %
10,00
0,00
9,45
9,44
9,44
3,16
3,14
3,12
February
MarchA
pril
Source: Bulletin of the Central Bank of Montenegro November 2012, December 2012 and January 2013.