Montenegro’s banking sector recorded faster growth in loans than deposits through May 2026, with credit expanding at more than twice the annual rate of the deposit base. Total loans reached €5.77 billion at the end of May, up 12.3% year on year, while deposits increased 5.7% to €5.97 billion.
Deposits therefore remained above total lending across the banking system, although the two balances recorded markedly different growth rates. The gap was particularly pronounced among companies. Corporate loans rose 14.9% to €2.03 billion, compared with a 4.5% increase in corporate deposits to €1.70 billion. Household deposits grew more rapidly, increasing 13.4% to €2.47 billion, but household lending expanded at an even higher rate of 18.6%.
The figures show lending increasing more rapidly than the accumulation of new deposits across both major borrower groups. Total loans nevertheless remained below aggregate deposits at the end of May. Higher credit growth increases the amount of financing available to companies and households, including for business activity, housing and consumption. The available report does not provide evidence of immediate liquidity stress and does not include prudential liquidity indicators. The difference between loan and deposit growth therefore does not, on the basis of the reported figures, establish a banking-sector problem.
The faster expansion of lending does, however, change the relationship between banks’ loan books and deposit bases. In such an environment, funding costs, loan pricing and deposit retention become relevant elements of banking-sector activity. Corporate deposits increased by only 4.5% while corporate loans grew by 14.9%, and household lending also outpaced household deposits, with growth of 18.6% and 13.4%, respectively. By May, Montenegro’s banks were therefore recording stronger credit expansion than deposit growth while maintaining an aggregate deposit balance of €5.97 billion, compared with €5.77 billion in loans.
