Montenegro’s banking-sector assets reached €7.83 billion at the end of January, increasing 9.9 per cent year on year, while deposits and capital continued to provide the sector with a predominantly domestic funding base. Net loans accounted for 66.3 per cent of total assets, followed by securities at 18.2 per cent and cash and central-bank deposits at approximately 12 per cent.
On the liabilities side, deposits represented 76.2 per cent, while total banking capital reached €1.04 billion, almost 15 per cent higher than a year earlier. The deposit-funded structure limits banks’ exposure to wholesale refinancing and provides a stable basis for domestic lending. Credit allocation remains the main consideration. Lending to households, property buyers and construction can support economic activity while increasing exposure to assets linked to tourism, foreign purchasers and coastal property prices.
Financing supported by the European Investment Bank through the Development Bank of Montenegro and commercial lenders can direct credit towards digitalisation, energy efficiency, manufacturing and smaller renewable-energy projects. A separate €187 million regional innovation and green-transformation facility is also planned to provide loans, grants and technical assistance to small and medium-sized enterprises across the Western Balkans through partner financial institutions.
Montenegrin companies are eligible for the facility. Access to the financing, however, depends on their ability to prepare audited financial statements, technical investment plans, environmental documentation and credible cash-flow forecasts. The availability of concessional funding does not by itself create a bankable corporate borrower.
