The Central Bank of Montenegro said the Financial Stability Council, at its 77th meeting, reviewed its 2025 annual report and first quarter 2026 financial stability update and assessed risk in Montenegro’s financial system as moderate. Financial stability was maintained throughout 2025 despite geopolitical and domestic and international pressures, and the banking sector remained the core stable part of the system while continuing to support the economy. For the first quarter of 2026, retail trade grew by 4.2 percent year on year and industrial production by 7.5 percent, while tourist arrivals fell by 1.3 percent and overnight stays by 2.6 percent. Banking sector deposits reached EUR 5.92 billion at end-March and total loans EUR 5.59 billion, up 15 percent year on year. Loan growth was accompanied by lower asset quality and pricing risks, with the non-performing loan ratio at 2.43 percent and the average weighted lending rate down 0.28 percentage points to 6.13 percent. In insurance, gross written premiums rose by 6.18 percent in the first three months of 2026. The Council said banks’ exposure to systemic risks remained moderate, while the Central Bank of Montenegro continues to monitor cyclical risks from credit growth and rising real estate prices, as well as elevated geopolitical risks.
Central Bank of Montenegro2026-05-25
Central Bank of Montenegro reports Financial Stability Council assessed financial system risk as moderate and banking sector stable in Q1 2026
The Central Bank of Montenegro reported that the Financial Stability Council assessed systemic risk in Montenegro’s financial system as moderate, with stability preserved and banks remaining the core stable sector. In the first quarter of 2026, credit and deposit growth continued alongside low non-performing loans of 2.43 percent and a decline in average lending rates to 6.13 percent, while insurance premiums also increased. The Council noted banks’ exposure to systemic risks remains moderate and the central bank is monitoring cyclical risks from credit growth, rising real estate prices and elevated geopolitical risks.