Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Graphic 4. Structure of deposits by sectors, period-end, in % 41,4% 39,8% 41,0%
Demand deposits
58,6% 60,2% 59,0%
Time deoisits 18,0% 13,0% 12,5%
Up to 3 months
29,3% 35,9% 35,2%
From 3 months up to 1 year 9,8% 9,2% 9,2%
From 1 to 3 year 1,5% 2,1% 2,1%
Over 3 years 0
20 X 10
40
XI 10
XII 10
Graphic 5. Structure of deposits, period-end, in % 34.8% 28.8% 27.9% 6.5% 6.8% 6.9%
General Government
48.5% 52.5% 53.2%
Households 1.3% 1.3% 1.4%
Non-profitable organisations
0.1% 4.1% 4.3%
Other 0
10 X 10
20
30
XI 10
XII 10
40
50
60
Table 1. Lending interest rates, period-end (%) Average lending interest rates
Household loans X 10
XI 10
XII 10
Nominal lending interest rate
9.75%
9.71%
9.69%
10.50%
10.45%
10.43%
Average lending interest rates
Loans granted to legal persons
Nominal lending interest rate
8.50%
8.50%
8.53%
Lending effective interest rate
9.02%
9.02%
9.12%
6
When observing data regarding bank assets for November and comparing it with October 2010, increases in the following items can be seen: monetary assets and deposits with depository institutions (5.1%) and other bank assets (6.2%). Provisions were also made for losses in other assets. In December 2010, in the area of bank liabilities, deposits accounted for the main share (60.8%), followed by borrowing (23.7%) and total bank capital (10.6%). The remainder (4.9%) was other miscellaneous liabilities. Regarding last month, the only increase was recorded in the area of capital (0.1%). Observing data from November and comparing with October, increases were recorded in all liabilities.
Deposits Total deposits amounted to €1,790.4 million at end-December 2010, and remained the same as in the previous month. At end-November 2010, in comparison with the previous month, total deposits increased by 0.2%. In December and November 2010, within the deposit maturity structure, time deposits were dominant (59,0%; 60,2% respectively).
Household deposits Total household deposits amounted to €951.7 million at end-December 2010. In relation to the previous month they recorded a growth of 1.3%. During the period October-November 2010, total household deposits increased by 1.7%. At end-December and end-November 2010, in the maturity structure of household deposits, time deposits were dominant with recorded levels of 66.9% (12.10) and 67.8% (11.10). Demand deposits accounted for 33.1% (12.10) and 32.2% (11.10).
Loans
Period
Lending effective interest rate
Total bank assets amounted to €2,944.0 million at end-December 2010, 0.7% lower than at end-November 2010. In December 2010, within the total structure of bank assets, net loans accounted for the main share (70.1%), followed by monetary assets and deposits with depository institutions (21.4%) and other bank assets (6.6%), while other miscellaneous assets accounted for the remaining (1.9%). When compared with November 2010, bank assets recorded an increase in monetary assets and deposits with depository institutions (3.5%).
In the structure of time deposits, the largest share was recorded by deposits with a maturity period from 3 months to 1 year (12.10 - 35,2%; 11.10 – 35,9%) and those with a maturity period of up to 3 months (12.10-12,5%, 11.10 – 13,0%).
8.8% 6.5% 6.4%
Non-financial institutions
Total Bank Assets and Liabilities
Total bank capital amounted to €312.9 million at end-December 2010, while at endNovember 2010 it amounted to €312,6. At end-November 2010, total bank capital was 5.9% higher than it had beenin October 2009.
60
* Observed by sector in the area of deposits, those made by Montenegrin inhabitants were still dominant and make about 50.0% of the total amount.
Financial institutions
Banking Sector
At end-December 2010, total loans granted by banks amounted to €2,208.9 million. Compared with November 2010, a decline of 0.8% was recorded. A decline (1.3%) in the total number of loans can also be seen when comparing data from November 2010 with figures from October 2010 ones. The loan-to-deposit ratio was 1.23 in December 2010, thus showing an improvement in relation to the previous month when it was 1.24. Compared with October, when it was 1.26, the loan-to-deposit ratio improved in November 2010. The loan/deposit-plus-borrowings ratio was 0.888 at end-December 2010, while at endNovember 2010 it was 0.887. The loan-to-deposit ratio was 0.98 at end-October 2010. In the structure of total disbursed loans, corporate and household loans were dominant and represented 94.2% in December, while in November they accounted for 93.9%. There mainder referred to banks, other financial institutions, public owned organisations, non-profitable organisations and others. In December 2010, corporate loans amounted to €1,273.7 million, while household loans amounted to €863.6 million. Source: Bulletin of Central Bank of Montenegro (Janury 2011, December 2010, November 2010)