Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Graphic 3. Structure of deposits by sectors, period-end, in % 6.3 5.7 6.5
Financial institutions
29.2 28.6 28.2
Non-financial institutions 6.9 6.9 6.0
General Government
52.1 53.5 54.0
Households 1.3 1.2 1.2
Non-profitable organisations
4.2 4.1 4.0
Other 0,0
10,0
20,0
II 11
30,0
III 11
40,0
50,0
60,0
IV 11
Banking Sector Total Bank Assets and Liabilities Total bank assets amounted to €2,909.6 million at end-April 2011, and €2,903.5 million at end- March. Observing data from end-March to end-February 2011, total bank assets recorded a decrease of 1.4%. In April, within the structure of total bank assets, net loans accounted for the main share (67.5%), followed by monetary assets and deposits with depository institutions (21.6%) and other bank assets (7.4%), while other assets accounted for the remainder (3.5%). When compared with figures in March, bank assets recorded increases in the areas of loan loss provisions (11.2%) and securities (8.5%). When comparing data from the bank assets structure for March and February, an increase was recorded in the following areas: factoring and forfeiting (190.4%) and loss provisions from other assets (13.6%). In April, within the liabilities of banks, deposits accounted for the main share (61.8%), followed by borrowing (22.5%) and total bank capital (10.5%), whereas the remainder (5.2%) was made up of other liabilities. In relation to the previous month, the following increases were recorded: deposits (0.7%), borrowing (0.4%) and capital (1.1%). Data from March, when compared with the figures recorded in February, showed increases in the areas of other liabilities and total capital of 14.4% and 2%, respectively. Total bank capital amounted to €305.9 million at end-April 2011, while at end-March 2011 it amounted to €302.6 million. At end-March 2011, total bank capital was 2.0% higher than it had been in February 2011.
Deposits * Viewed on a sector by sector basis, within the deposit structure, deposits by individuals were still dominant and represented about 53.0% of the total. Graphic 4. Structure of deposits, period-end, in % 41.0 40.2 40.8
Demand deposits
59.0 59.8 59.2
Time deoisits 13.3 13.3 13.5
Up to 3 months
8.3 9.1 9.2
From 1 to 3 year 2.4 2.7 2.7
Over 3 years 0,0
10,0
II 11
20,0 III 11
30,0
40,0
50,0
60,0
70,0
IV 11
Household loans
Period
X 10
XI 10
Nominal lending interest rate
9.64%
9.62%
9.62%
Lending effective interest rate
10.37%
10.35%
10.34%
Average lending interest rates
At end-April, end-March and end-February, 2011, within the maturity structure of household deposits, time deposits were the most dominant (67.2%, 68.2%, 67.9% respectively), while demand deposits accounted for 32.8% (4.11), 31.8% (3.11) and 32.1%(2.11).
Loans
Table 1. Lending interest rates, period-end, in % Average lending interest rates
Household deposits Total household deposits amounted to € 971.7 million at end-April 2011. In relation to the previous month, they recorded a growth of 1.8%. During the period February-March 201, total household deposits increased by 0.6%.
35.0 34.7 33.8
From 3 months up to 1 year
Total deposits amounted to € 1,796.8 million at end-April 2011. When comparing data from April to data recorded in March, total deposits increased by 0.7%, while compared with April 2010, there was an increase of 2.7%. Total deposits amounted to € 1,818.0 million at end-February 2011. In February, March and April of the current year, within the deposit maturity structure, time deposits were dominant (59.2%, 59.8%, 59.0% respectively). Within the structure of time deposits, the largest shares were recorded in the area with deposits representing maturity periods ranging from 3 months to 1 year ( 4.11-57.2%, 3.11- 58.1%, 2.11 – 35.0%) and for those with a maturity period of up to 3 months (4.11-22.8%, 3.11-22.2%, 2.11- 13.3%).
XII 10
Loans granted to legal persons
Nominal lending interest rate
8.55%
8.62%
8.64%
Lending effective interest rate
9.15%
9.21%
9.22%
At end-April 2011, total loans granted by banks amounted to € 2,092.1 million, which was the same as was recorded during the previous month, but was 10.8% less than in April 2010. A decline in the total number of loans was also recorded when comparing data from March with figures recorded in February 2011. The difference was 2.8%. The loan-to-deposit ratio amounted to 1.16 in April of the current year and was therefore almost the same as it had been the previous month. This ratio represents the relationship between loans and deposits. In this case loans exceed deposits by 16 %. In comparison with February, when it amounted to 1.18, the loan-to-deposit ratio improved in March 2011. The loan/deposit-plus-borrowings ratio amounted to 0.85 at end-April 2011,while at endMarch and end-February 2011 it amounted to 0.86. Within the structure of total disbursed loans, corporate and household loans were dominant at a level of around 94.0% during the period February – April. The remainder related to banks, other financial institutions, publically owned organisations, non-profitable organisations and others. Source: Bulletin of Central Bank of Montenegro (Janury 2011, December 2010, November 2010)
6