The 74th meeting of Montenegro’s Financial Stability Council was held today, chaired by Dr. Irena Radović, Governor of the Central Bank. Attendees included Finance Minister Novica Vuković, Capital Market Commission President Željko Drinčić, Insurance Supervision Agency Council President Marko Ivanović, and, by invitation, Deposit Protection Fund Director Vojin Vlahović.
The Council reviewed the Financial Stability Report for Q2 2025, noting growth in retail trade, construction, and industrial production in the first six months of the year. Tourist arrivals increased while overnight stays declined. Public finances were assessed as stable, with households benefiting from rising real wages and falling unemployment.
The banking sector remained stable, liquid, and solvent, with deposits reaching €5.71 billion by June 2025, up €329 million (6.11% year-on-year), representing 77% of banks’ liabilities. Total loans stood at €5.17 billion, a 15.23% annual increase, with new loans in the first half of 2025 rising 40% compared to the same period in 2024.
The report noted moderate exposure of the banking sector to systemic risks, with cyclical risks related to rising real estate prices and increasing household debt. The Central Bank indicated it would apply macroprudential measures or other instruments if these trends continue. The Council concluded that Montenegro’s overall financial stability remains preserved, emphasizing the need for continuous risk monitoring.
