Financial Sector Assessment Program : Montenegro Finance for Growth
This technical note reviews with the status access to finance for enterprises in Montenegro, identifies key bottlenecks, and provides recommendations on how to address main challenges. In particular, the note focuses on SME finance by assessing (i)...
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26187426/montenegro-finance-growth-technical-note http://hdl.handle.net/10986/24127 |
| Summary: | This technical note reviews with the
status access to finance for enterprises in Montenegro,
identifies key bottlenecks, and provides recommendations on
how to address main challenges. In particular, the note
focuses on SME finance by assessing (i) bank SME lending,
and (ii) current constraints facing further development and
deepening of the non-bank credit sector. The note develops
key findings presented to the authorities during the FSAP
mission and summarized in the aide-mémoire. The Montenegrin
financial sector has yet to recover from the collapse of the
real estate bubble in 2008. The crisis has exposed important
weaknesses in the financial sector’s governance, oversight
and infrastructure which had fueled years of unsustainable
credit growth leading up to the crisis. The resulting
balance sheet deleveraging and restructuring process has
reduced the banking sectors’ ability to finance the
corporate sector, which continues to suffer from slow
economic growth and remaining weaknesses in the business environment. |
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