CBCG and Commercial banks: First SEPA transactions Set for 6 October

17/04/2025

In addition to the CBCG, which submitted an application to the European Payments Council (EPC) for adherence to the SEPA payment schemes on 14 April, several system banks in Montenegro that account for 53.4% of the market also did so. The remaining banks are in the final stage of preparing their applications and plan to submit them to the EPC by 15 May 2025. As a result, all banks operating in Montenegro will begin the operational adherence process to the SEPA system, allowing for faster, much cheaper and safer international payments from/to Montenegro starting on 6 October this year, following the EPC’s established timeline.

This message was conveyed at today’s meeting between Governor Irena Radović, the CBCG team, and the presidents of management boards of banks and their teams, where they discussed modernising the national payment infrastructure alongside key activities accompanying this transition.

The progress in the adherence to SEPA highlights the Montenegrin banking sector’s commitment to reforms that bring tangible benefits to citizens and the economy. The meeting underscored the CBCG’s role in providing technical and professional support to banks throughout all phases of this process.

“Such partnership and shared vision of modernising the payment infrastructure is key to the successful transformation we are implementing and to creating conditions for Montenegrin citizens and entrepreneurs to benefit from the same advantages as EU users,” said Governor Radović. She emphasised that banks that adopt a transparent and cost-effective SEPA model timely will further enhance their market position, while those that cling to outdated models may face diminished competitiveness and customer loss.

During the meeting, participants discussed the next steps towards the complete migration of banks to the ISO 20022 standard, the application of which enables more precise and automated processing of transactions. They also discussed the upcoming TIPS Clone project, aimed at facilitating instant payments 24/7/365 per European standards, which the CBCG is implementing under the auspices of the ECB and in cooperation with the Banca d’Italia.

The meeting concluded that these activities contribute to transforming the national payment infrastructure into a contemporary, digitally oriented system, thereby providing more efficient, safer and cost-effective financial services for citizens and the economy.

The CBCG analysis on the economic effects of SEPA integration and the implementation of the TIPS Clone system was presented at the meeting. It indicated that SEPA integration is one of Montenegro’s most important structural reforms, bringing an annual economic benefit estimated at 37.9 million euros or 0.54% of GDP. In addition to direct savings on bank fees, reduced business costs and formalisation of remittances (of 26.9 million euros already in the first year of SEPA implementation), SEPA also enables accelerating financial inclusion and digitalisation, especially in tourism and services. Additional macroeconomic effects such as increased foreign investments, greater export competitiveness and improved electronic payment channels confirm its transformational potential.

According to the analysis, the combination of SEPA and the TIPS Clone implementation is expected to be one of key country’s milestones, generating a potential annual added income of up to 160 million euros or 2.3% of GDP through direct savings on transaction costs and system efficiency, increasing financial inclusion and digital access, increasing export efficiency and foreign direct investments, digitising tourism and services, faster B2B and B2G payments, reducing remittance costs, and boosting investor confidence through integration into the EU payment infrastructure.

“The initiated transformation of Montenegro’s payment system is creating a sustainable and competitive banking sector ready to respond to the needs of modern users and European integrations”, was the message of today’s meeting.

Statement of CBCG Governor Irena Radović

Statement of Martin Leberle, President of the Management Board of NLB bank

Statement of Tamás Kamarási, President of the Management Board of CKB bank

Statement of Esad Zaimović, President of the Management Board of Hipotekarna banka

Covers from the Meeting