Indicators and Reports

The Central Bank uses several quantitative and qualitative indicators in order to assess the situation regarding financial stability, primarily from the banking sector, as the dominant sector in the financial system of Montenegro, then from the real economy, public finances, balance of payments, domestic capital market, as well as macroeconomic and financial indicators from relevant foreign markets. Some of the indicators are used as presented and some are subject to additional adjustments and/or calculations. In addition, the significance of a given indicator can vary over time, depending on the extent to which certain trends and processes are up-to-date and significant.

In order to properly assess risks, the Central Bank compiles the Financial Soundness Indicators in accordance with the IMF's Compilation Guide. The international methodology used in the production of these indicators ensures the comparability of data for the purpose of relevant analyses, additionally strengthening the analytical framework for the monitoring, identification, and control of systemic risk. The pursuit of a macro-prudential policy, as a policy aimed at preserving financial stability, goes beyond the concept of financial soundness indicators so other relevant data necessary for this policy are used as well.

The CBCG continuously monitors and assesses financial stability, primarily in order to specify corrective measures in case of risk build-up or in case of their (partial) materialisation, and in order to direct public attention to risks related to financial stability. The key report through which these analyses are published is the Financial Stability Report which is prepared on an annual basis. In addition to this, the analysis of financial stability trends is partly published in the CBCG Annual Report, as well as in monthly Report on the implementation of the CBCG policy.

In addition to the reports, reviews and assessments of financial stability issues are communicated in the CBCG statements, as well as through media communications by the CBCG management or its experts in the domain of financial stability.