The Central Bank of Montenegro published a readout of the Financial Stability Council’s 77th meeting, where the council reviewed its 2025 annual report and a first quarter 2026 financial stability update. The council concluded that financial stability in Montenegro was preserved through 2025 and that risk in the financial system remains moderate, with the banking sector continuing to show resilience and stability while supporting the economy. The first quarter update showed annual growth in retail trade of 4.2% and industrial production of 7.5%, alongside declines in tourist arrivals of 1.3% and overnight stays of 2.6%. In banking, deposits rose to EUR 5.92 billion at end-March and total loans reached EUR 5.59 billion, up 15% year on year. Loan growth coincided with lower non-performing loans and lower lending rates, with the non-performing loan ratio at 2.43% and the average weighted lending rate at 6.13%, down 0.28 percentage points over the same period. In insurance, gross written premiums increased by 6.18% in the first three months of 2026. The council said exposure to systemic risks remains moderate, while the Central Bank of Montenegro continues to monitor credit growth, rising real estate prices and elevated geopolitical risks.
Central Bank of Montenegro2026-05-25
Central Bank of Montenegro says Financial Stability Council assesses systemic risk as moderate and banking sector as resilient
The Central Bank of Montenegro reported that the Financial Stability Council’s 77th meeting confirmed financial stability was preserved in 2025 and that systemic risk remains moderate, with a resilient banking sector. First quarter 2026 data showed solid loan and deposit growth, lower non-performing loans and lending rates, and higher insurance premiums, alongside mixed real sector data. The council said it continues to monitor credit growth, rising real estate prices and elevated geopolitical risks.