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Republic of Montenegro :, Financial System Stability Assessment

Montenegro is undergoing rapid credit growth in the context of heavy foreign bank presence and euro use. However, the rate of credit expansion is testing the limits of banks’ capacity to underwrite loans prudently and maintain adequate buffers. Rapid credit growth is now also posing supervisory challenges, despite relatively strong financial sector regulation and supervision. The recommended policy response is a mix of prudential strengthening required to address risks emanating from rapid credit growth, and measures to address specific vulnerabilities
Table Of Contents
Cover; Contents; Glossary; Executive Summary; Main Recommendations; I. Background; Figures; 1. Developments in Financial Sector; Tables; 1. Selected Economic Indicators, 2002-2007; II. Key Financial Sector Risks and Vulnerabilities; 2. Structure of the Financial System, 2002-2006; 3. Financial Soundness Indicators of the Banking Sector, 2004-2007; A. Rapid Credit Growth; B. Vulnerabilities Associated with Unilateral Euroization; C. Stress Testing; D. Stock Market Buoyancy; 4. Summary Results of Stress Tests; 2. Stock Market Capitalization; III. Structural Issues; A. Prudential Supervision
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (39 p.)
Specific Material Designation
Form Of Item

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