Banks more and interest on loans do not fall

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Banks are growing, but interest on loans is not falling.

Montenegrin banks have the opportunity to increase credit activity and reduce interest rates. This conclusion can be drawn from the fact that in the fourth quarter of last year, domestic deposits in banks were more than loans, says bank ombudsman Khalil Kalach, commenting on the relatively large number of banks in the small Montenegrin market and expensive loans.
The Montenegrin market employs 14 banks and six financial institutions for microcrediting. Another bank is expected to be launched this year.

"In terms of numbers, this is a large number of subjects. Nevertheless, demand for credit products is very pronounced, and existing proposals are expensive. The high interest rates and other costs associated with the use of these products make them significantly more expensive than the EU ... ", explains Kalach.
Undoubtedly, he believes, the arrival of new banks will increase competition, which should lead to the formation of a qualitatively new proposal in this sector.

"The interest in opening banks in Montenegro speaks about the enabling conditions for work, the possibility of doing good business for banks. The stimulating field for the activities of banks implies a high demand for legislation, as well as the possibility of using local resources for business, "added Kalach.

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