Novaka Miloseva bb,Podgorica,

81000 Montenegro
Tel: +381 (0) 81 232 028 or 232 029

Montenegro’s banking sector: Facts & Figures

Updated December 2020 – For earlier editions of Facts & Figures click here

Montenegro is a country on the Balkan Peninsula, with a population of 620,000. It gained its independence in 2006, but has been applying the “euroization” system since 2002, i.e. it uses the euro as its legal tender. The country is a candidate for membership to the European Union and has opened all negotiating chapters.

Montenegro has achieved significant GDP growth in the past few years, and in 2019, gross domestic product amounted to  €4.9 billion and grew by 3.1%. Observed per-capita, in 2019, the growth ranged from $6,900 to $7,743 and further growth was expected. According to purchasing power standard, it rose from 44% to 47% of the EU average.

The financial system is bank-dominated consisting of 13 commercial banks and five micro-credit financial institutions. The banking system is stable, liquid and solvent having a low level of NPLs of 3.8% which are in constant decline. Liquid assets are at about 20% of total assets and solvency at the system leve was at 17.8%. Total assets amounted to  €4,603 billion, loans were  €2,942 billion, and they grew by 4.5%, while deposits amounted to €3,485 billion. New loans showed year-on-year 8.15%. Interest rates on loans showed a constant mild downtrend.

The banking system is well-capitalised and it amounts to about €600 million. A record profit growth of  €50.6 million was achieved, which was twice as much as last year.

Contributor: Nebojsa Djokovic