Better Conditions for Higher Protection of Bank and MFI Clients
20/11/2025
At today’s meeting, chaired by Governor Irena Radović, the Council of the Central Bank of Montenegro adopted a set of by-laws that provide the prerequisites for the full and efficient implementation of the new Law on Consumer Credits. The package of ten decisions, fully aligned with the EU Directive on credit agreements for consumers relating to residential immovable property (2014/17), defines clear rules for the practical application of this Law.
We remind the public that during the preparation of this law, the CBCG initiated the introduction of European solutions with the aim of enhancing consumer protection.
The Law, which enters into force on 28 November this year, brings significant improvements for citizens as credit users, in line with practices in EU member states. Above all, it establishes the maximum permitted interest rate on consumer loans, preventing borrowing under extremely unfavourable conditions, and abolishes fees for processing and early repayment of housing loans. The Law also enhances the protection of clients facing financial difficulties by enabling earlier identification of such situations.
The decisions adopted today introduce new mechanisms aimed at enhancing the position of consumers and improving their rights. The implementation of the Law and its by-laws, under the supervision of the CBCG, will ensure greater transparency of lending and a higher level of consumer protection.
The Council also discussed the publication Macroprudential Analysis and Policy – No. 1. This is a new CBCG publication that provides, on a semi-annual basis, an overview of systemic risks and macroprudential measures applied by the CBCG with the aim of safeguarding financial stability. One of the most typical macroprudential measures is capital buffers, i.e. protective layers of capital that oblige credit institutions to allocate additional capital to cover potential materialisation of risks. The publication states that systemic risks at the end of H1 2025 were moderate, the countercyclical buffer rate remained unchanged, and other capital buffers were applied in accordance with the need for preventive action on identified risks.
At today’s meeting, the Council also considered and adopted other materials within its remit.