74th Meeting of the Financial Stability Council: Loans and deposits growth with moderate systemic risks
12/09/2025
Today, the Financial Stability Council (FSC) held its 74th meeting chaired by Irena Radović, the CBCG Governor and the Council Chairman, and attended by the Council members Novica Vuković, the Minister of Finance, Željko Drinčić, the President of the Capital Market Authority, and Marko Ivanović, the President of the Insurance Supervisory Agency’s Council. Vojin Vlahović, the Director of the Deposit Protection Fund, also participated at the Governor’s invitation.
The Council also discussed the Information on Financial Stability for the Second Quarter of 2025, which indicates that retail trade, construction and industrial output recorded growth in the first six months of the year opposed to the year-on-year decline in tourist overnights and arrivals in the same period.
Public finance were assessed stable, while the households' position was additionally strengthened through rising real wages and decreased unemployment.
Banking sector remained sound, liquid and solvent, with growing deposits. At the end of June 2025, total deposits amounted to 5.71 billion euros or 77% of banks’ liabilities and capital and recorded year-over year growth of 329 million euros or 6.11%. At the same time, total loans amounted to 5.17 billion euros or 15.23% more than in June 2024. New loans recorded a year-on-year increase of 40% in the first six months of 2025.
The information stated that banking sector's exposure to systemic risks at the end of the second quarter of 2025 was moderate, with still present cyclical risks, primarily of rising real estate prices and increased households’ borrowings. If such trends continue, CBCG will act by amending macroprudential policy or other instruments if needed.
The Council concluded that total financial stability in Montenegro remains safeguarded, and highlighted the need of continuous risk monitoring for timely acting.