1. Banking sector in Montenegro

2. Free template from www.brainybetty.com 2 Macroeconomic data 20022003200420052006 GDP (mil €)1,301.501,433.001,535.001,644.001,778.81 GDP per capita €2,109.112,317.902,472.992,638.002,790.50 GDP growth (%)1.702.303.704,10 6.50 Inflation9.406.704.301,802.5 Unemployment rt.30.4525.8222.617,0015.5 Average wage193271302.81326.50376.37 Total credit124.66200.63284.08377.30653.1 Savings deposits22.2145.0780.68173.02351.8 Investments182.90213.62111.08382.82502.00 Sources: Central Bank Of Montenegro; Institute for Strategic Studies and Prognoses

3. Free template from www.brainybetty.com 3 SWOT analysis Banking sector in Montenegro Strengths Stability and strong currency Favorable legislative and institutional framework Independent Central bank without emission function Implemented international standards in the bank monitoring Private banking sector Liberal system in financial and capital flows Good human capital

4. Free template from www.brainybetty.com 4 SWOT analysis Banking sector in Montenegro Weaknesses Distrust in banking sector Low rating deposit High interest rate on credit Furlough from international market for year Missing regulation in certain districts Payment circulation is still not completely reformed Rigid labor law Inefficient court system

5. Free template from www.brainybetty.com 5 SWOT analysis Banking sector in Montenegro Opportunities Attracting foreign investments Continuation of implemented international standard in banking monitoring Improvement of cooperation with international financial institutions Implemented IT technology in extension banking services

6. Free template from www.brainybetty.com 6 SWOT analysis Banking sector in Montenegro Opportunities Continue perfection human capital extension banking services bank Dispersal variety of banking Improvement of monetary statistic and analytic Implemented IT technology in extension banking services bank

7. Free template from www.brainybetty.com 7 SWOT analysis Banking sector in Montenegro Threats High transaction costs Unfair competition Early assumption of determination of international bureaucracy standard Inefficient adhibition of legislative solutions in certain districts Inefficient and long procedure of bank bankruptcy and liquidation Impossibility of outstanding account payment

8. Free template from www.brainybetty.com 8 Objectives Finalizing bank privatization and opening bankruptcy and liquidation process Further increase in efficient monitoring of the banks through implementation of principles of Basel 1. Making conditions for further decreasing interest rate

9. Free template from www.brainybetty.com 9 Objectives Working on further legislation improvement which directly or indirectly influences banking sector Improvement of payment circulation in order to increase its efficiency Decrease in transaction costs of user banking services

10. Free template from www.brainybetty.com 10 Bank Founding A bank is founded and operates as a joint stock company. A bank may be founded by domestic and foreign legal entities and private individuals, at least two founders. No party may engage in banking operations without license of Central Bank Minimum financial amount of initial capital may not be less than EUR 5,000,000. Source: Central Bank

11. Free template from www.brainybetty.com 11 Bank Founding The bank founders shall submit to the Central Bank the application for a bank license with next documents: the foundation contract, the proposed by-laws, data on professional qualifications and working experience for the last five years for proposed members of Managing Board of the bank, data of shareholders holding more than 5%, business plan of the bank for the next three years, technical and personal capabilities data Source: Central Bank

12. Free template from www.brainybetty.com 12 Status of banking sector 10 commercial banks Concentration of financial potentiality – 59,5 of total banking capital is assets of 3 bank. Increasing trend in credit activities of banks - total sum of credit was increase for 40% in 2006

13. Free template from www.brainybetty.com 13 Institutional ambient of banking sector Institutional ambient in which bank work characterizes usage of euro as legal means of payment Since establishment of Central bank adoped new laws are: Law on the Central Bank Law of bank Law of bankruptcy and liquidation Law of deposit security Source: Ministry of Tourism

14. Free template from www.brainybetty.com 14 Bank in Montenegro Name of bankheadquortersEstablishing year 1 Crnogorska Komercijalna banka AD Podgorica1997 2 Euromarket banka NLB ADPodgorica2000 3 Hypo Alpe-Adria Bank AD Podgorica Podgorica2006 4 Podgorička banka ADPodgorica1906 5 Opportunity banka ADPodgorica2002 6 Atlasmont banka ADPodgorica2002 7 Montenegrobanka ADPodgorica1995 8 Prva banka Crne Gore AD Nikšić Nikšić1901 9 Hipotekarna banka ADPljevlja1991 10 Komercijalna banka ADBudva2003

15. Free template from www.brainybetty.com 15 Leading financial groups Societe Generale Group – One of the leading financial groups in the euro zone. 386 billion assets under management. The third corporate and investment bank in the euro zone. More than 19 million customers in the real banking in the world. The Societe Generale Group purchased 64,4% shares of »Podgoricka Banka« in state ownership, for 385 euros per share. Hypo Alpe-Adria-Bank Group is in Montenegro, too. This group have locations in Austria, Italy, Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro, and Germany. The Hypo Alpe-Adria-Group employs more than 5,200 people that serve more than 750,000 customers. The three strategic business sectors of the Hypo Alpe-Adria Group - banking, leasing and consulting.