CBCG committed to protecting the rights of credit institutions’ clients and financial services beneficiaries

27/09/2022

The Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, met today with the representatives of the EU Expert Mission for Chapter 28 – Consumer and health protection, Vitomir Fister and Marko Baretić.

Governor Žugić informed the interlocutors about the current situation in the banking sector and said the banking system is stable and the key banking parameters are at record levels. He also informed them about the CBCG activities in protecting the rights of credit institutions’ clients and financial services beneficiaries, emphasising that this is one of the key supervisory CBCG functions. He noted that the CBCG undertook a series of organisational activities to strengthen the personnel resources in that area in the previous period.

“The most recent good example of the CBCG practice in this sense is its preventive intervention and the requirement that banks prepare programmes to protect clients with loans with a variable interest rate. Through these programmes, loan users will be warned clearly and unambiguously about all the risks arising from interest rate fluctuations. Before concluding a loan agreement with a variable interest rate, banks will inform clients of the consequences of a possible further EURIBOR increase, so they will be able to assess whether the proposed loan agreement is adapted to their needs and financial situation,” said Governor Žugić.

The EU experts stated that the Mission’s objective is a comprehensive assessment of the level of Montenegro’s readiness in terms of meeting the final criteria for the temporary closure of the negotiation Chapter 28.

“The purpose of the expert mission is a comprehensive evaluation of the current state of the consumer protection system and its functioning, to assess the adequacy of administrative structures and capacities for the proper implementation of legislation until the moment of EU accession,” the EU experts stated.