The Financial Stability Council, chaired by Central Bank of Montenegro Governor Irena Radovic, held its 73rd meeting and reviewed its 2024 work report and a first-quarter 2025 financial stability update. It concluded that financial stability was preserved in 2024 and that systemic risks remained mainly moderate, while noting an expected increase in cyclical risks linked to real estate prices reaching historically high levels that should be closely monitored. Recent data discussed by the Council pointed to lower growth in construction and retail trade and declines in industrial output and transport in the first quarter of 2025. Tourist arrivals rose 4.4% year on year while overnight stays fell 9.9%; total loans reached EUR 5.03 billion at end-April 2025, up 15% from end-April 2024, alongside a fall in the non-performing loan ratio to 2.99% and a decline in the weighted average lending rate to 6.37%. In insurance, gross invoiced premiums increased 8.21% in the first four months of 2025 compared with the same period a year earlier. To strengthen digital operational resilience and the financial system’s ability to respond to serious cyber threats, the Council supported the Central Bank of Montenegro’s initiative to begin harmonising domestic legislation with the EU Regulation on digital operational resilience (DORA), which sets uniform requirements for the security of network and information systems supporting financial entities’ business processes.

Original source View in tracker