Montenegro’s household sector recorded strong growth in both borrowing and bank deposits through May 2026, with household credit and savings reaching broadly similar levels. Household loans stood at €2.55 billion in May 2026, an increase of 18.6% year on year. Household deposits rose by 13.4% to €2.47 billion over the same period.
The difference between the two balances was relatively small, with household deposits remaining close to the total value of household loans. The figures show simultaneous expansion in household borrowing and savings rather than an increase in credit alone. The available Ministry data do not identify the specific factors behind the two developments. Other indicators recorded during the period included stronger employment and higher nominal earnings. Average employment in January-May 2026 was 5% above the level recorded a year earlier, while average net earnings increased 2.2%.
The increase in household lending occurred alongside these gains in employment and income. The available data do not specify how household credit was allocated among housing, consumption or other forms of spending. Deposit growth also continued at a substantial rate, with household savings in banks increasing to €2.47 billion by May.
For the banking sector, the expanding deposit base represents household funds held within the financial system, while the simultaneous rise in credit has increased the amount borrowed by households. The relative growth rates of household credit and income remain relevant to the development of household leverage. At the same time, continued deposit growth means that households are also accumulating financial assets through bank savings. By May 2026, household loans had increased by 18.6% year on year and deposits by 13.4%, leaving both sides of household banking activity substantially larger than a year earlier.
