February 6 (SeeNews) - The ratio of non-performing loans (NPLs) to total loans in Montenegro's banking system was 6.91% at the end of last year, the central bank said.
At the end of 2017, Montenegro's NPL ratio amounted to 7.29%.
In December alone, Montenegro's NPL ratio fell by 0.4 of a percentage point on a monthly comparison basis, the central bank said in a statement on Tuesday.
The introduction of interim administration in Atlas Banka [MNG:ATBA] and Invest Banka [MNG:IBMN] on December 7 has not affected the trend of constant decline of the NPL ratio in the banking system, the central bank said.
Reducing the share of bad loans increases the banks' potential for credit growth, which positively affects the movement of interest rates and the support of the real economy, the central bank added.
At the end of 2017, Montenegro's NPL ratio amounted to 7.29%.