Governor of the Central Bank of Montenegro (CBCG) Irena Radović and her team held a meeting today with the management of commercial banks to discuss current developments in the banking sector, results following Montenegro’s accession to the SEPA payment system, and key priorities for the period ahead, the Central Bank announced. Vice Governors Zorica Kalezić, Gordana Kalezić, and Milan Remiković also took part in the meeting.
It was concluded that the domestic banking system remains stable, liquid, and adequately capitalized, with continued growth of key balance-sheet positions. The Central Bank noted that during the first month of SEPA implementation, there was a strong increase in the number of payment transactions, especially in the category of smaller amounts up to 200 euros. There was also a notable rise in electronically initiated orders, reflecting a clear customer preference for faster and cheaper digital channels, which are twice as inexpensive as transactions initiated at bank counters. Several banks already process more than 80 percent of their orders through SEPA, while the market as a whole has made a significant shift away from traditional and more expensive SWIFT transfers. These trends, the CBCG said, clearly show that citizens and businesses closely monitor the price and quality of services and readily choose more modern, faster, and more cost-effective solutions.
The discussion also covered recently adopted amendments to CBCG’s fee schedule, which cut national payment system processing fees by half: the RTGS fee was reduced from 1.50 euros to 0.75 euros, and the DNS fee from 0.10 to 0.05 euros. In line with the EU cost-recovery model and preparations for the introduction of the TIPS Clone system, the Central Bank has taken on the largest share of the financial burden of the reform. The CBCG expects a cumulative revenue decline of 12.37 million euros between 2026 and 2030. Given this, banks are required to fully transfer the benefit of lower costs to citizens and businesses by adjusting their own tariffs no later than 1 December 2025. The CBCG will closely monitor the full implementation of these obligations through regular supervision, ensuring transparent and efficient payment services for all users.
The meeting also reviewed key regulatory activities carried out during the year. The CBCG emphasized its strong and ongoing efforts to fully harmonize Montenegro’s regulatory framework with modern European supervisory standards. It was highlighted that the Central Bank has prepared the Draft Law on Amendments to the Law on Credit Institutions, fully aligned with the EU’s CRD VI Directive, which will become mandatory for EU member states starting 11 January 2026. With this proactive approach, establishing a regulatory framework aligned with EU requirements ahead of their implementation in the EU itself, the CBCG demonstrates institutional maturity and a clear strategic orientation, the Governor said. This position further strengthens the security and stability of the financial system.
The CBCG team announced that intensive regulatory and supervisory activities will continue throughout 2026, focusing on further strengthening risk management, improving the resilience of the banking sector, and aligning with best practices of the European supervisory model. Special attention will be given to the implementation of ESG principles through the development of internal capacities and policies to ensure consistent application of European guidelines and a shift toward sustainable risk-management models. Work has also begun on aligning with the DORA Regulation, the EU framework designed to ensure the digital operational resilience of financial institutions against cyber risks and technological incidents.
The statement also highlighted recent progress in strengthening the integrity of the financial system, including significant improvements in preventing money laundering and terrorism financing, both in regulatory alignment and supervisory practice, supported by the CBCG’s intensive cooperation with Eurosystem central banks. Additional progress was noted in the area of consumer protection, with the adoption of 10 by-laws under the Consumer Credit Act and a series of measures aimed at improving financial inclusion.
The meeting concluded with the message that the CBCG and commercial banks share joint responsibility for building a strong, modern, and resilient financial system. Banks expressed readiness to continue supporting initiatives aimed at strengthening the health and stability of the banking sector and preserving financial stability. Further modernization of payment infrastructure, improvement of service quality, stronger consumer protection, and consistent implementation of the highest European standards remain key priorities for the period ahead.
