Montenegro’s banking sector held €5.89 billion in outstanding loans at the end of August, while turnover on the Montenegro Stock Exchange amounted to just €1.56 million during the entire month.
Although the figures measure different financial activities and periods, they illustrate the scale of the banking sector compared with domestic stock-market trading.
Bank deposits totalled €6.49 billion, while total bank assets reached €8.33 billion. Household deposits accounted for €2.62 billion, making them a significant component of the banking system’s funding base.
Banks therefore remain central to the collection of savings and the provision of financing in Montenegro. The sector is liquid and well capitalised, supported by a substantial volume of domestic deposits.
The limited scale of securities-market activity is also relevant for companies seeking alternative sources of finance. The effective interest rate on new corporate loans rose to 5.56% in August, while the stock exchange recorded €1.56 million in monthly turnover. A more developed domestic capital market could provide companies with an additional funding channel alongside bank loans and give savers another investment option. The August figures show the difference in scale between bank lending and activity on the Montenegro Stock Exchange.
