Montenegro’s banking sector held €8.33 billion in assets at the end of August, equivalent to approximately 97% of the government’s estimated 2026 gross domestic product of €8.59 billion, according to figures cited by the Central Bank of Montenegro.
Total bank assets increased by 7.00% year on year, while loans expanded by 9.80% to €5.89 billion. Deposits rose 6.37% to €6.49 billion, and banking sector capital grew by 12.86% to €1.11 billion.
Net loans represented 69.07% of total bank assets, while securities accounted for a further 16.24%. Deposits remained the main source of bank funding, making up 77.93% of total liabilities and capital. Household deposits reached €2.62 billion, up 12.79% from a year earlier, while non-financial companies held slightly more than €2.02 billion. The loan-to-deposit ratio stood at 0.91, indicating that deposits exceeded the banking system’s outstanding loans.
Despite the expansion in lending, the cost of new corporate borrowing increased in August. The rise in total credit therefore coincided with higher financing costs for businesses.
