July 26 (SeeNews) - Montenegro's central bank said it has changed its criteria for classification of non-performing loans (NPLs), in order to adjust them to the regulations of the European Banking Authority (EBA).
The central bank, CBCG, has abolished the usage of collaterals as a criteriion for classifying loans as non-performing, it said in a statement earlier this week.
Therefore, loans will be classified as NPLs regardless of the type of collateral they carry if the other conditions for such a decision are met. The amendments ensure that the data on NPLs and restructured loans in the Montenegrin banking system are fully comparable with the data of EU member states, CBCG explained.
The ratio of NPLs to total loans in Montenegro's banking system was 5.9% at the end of March, down 0.8 percentage points on a quarterly comparison basis, the central bank said last month.