The Governor of the Central Bank of Montenegro (CBCG), Irena Radović, announced that Montenegro’s banking sector continues to grow and remains stable, providing a solid foundation for further economic development. As of March 2025, total bank assets reached €7.18 billion, reflecting an 8% increase compared to the previous year. Loans and receivables amounted to €4.9 billion, showing a 14% annual growth, while non-performing loans dropped to a historic low of 3.16%. Total deposits in the system were €5.63 billion, and bank capital increased by 13%, totaling €926 million. The capital adequacy ratio stands at 19.6%, well above the legal minimum of 8%, indicating a highly resilient banking system.
Credit activity also showed significant expansion. In the first quarter of 2025, newly approved loans rose by 37% compared to the same period last year. The demand for loans is mainly driven by individuals, who make up 42% of the total, followed by businesses with 39%. Within the business segment, credit is primarily directed toward trade (25%), tourism (16%), and construction (13%).
Interest rates have seen a noticeable decline. The effective interest rate for individuals dropped from 8.79% to 6.98%, while the rates for businesses decreased by 90 basis points. A new consumer credit law has also been introduced to cap excessively high-risk lending rates, offering greater protection to borrowers.
Montenegro is set to officially join the Single Euro Payments Area (SEPA) on October 6, 2025. This integration will bring faster and cheaper electronic transactions for both individuals and businesses. It is expected to save over €130 million annually by reducing fees for money transfers, card payments, and withdrawals. Although CBCG will lose about €3 million per year in payment system fees, the governor emphasized that this is a strategic investment in the country’s long-term financial development.
