75th Meeting of the Financial Stability Council
22/12/2025
Today, the Financial Stability Council held its 75th chaired by Irena Radović, the CBCG Governor and the Council Chair. The Council members Željko Drinčić, President of the Capital Market Authority, and Marko Ivanović, President of the Council of the Insurance Supervision Agency attended the meeting.
At the meeting, the Council discussed the Information on the Financial Stability for Q3 2025. It states that the domestic macroeconomic environment developments were supportive of financial stability. Preliminary data show that the Montenegrin economy recorded annual growth of 3.2% in the first half of the year. Data for the first nine months indicate growth in retail trade (3.9%) and construction (4%), while industrial production declined by 3.7%. Over the same period, annual growth in tourist arrivals amounted to 5.2%, while the number of overnight stays decreased by 1.9%.
The situation in public finances was assessed as relatively stable. The budget deficit amounted to 3% of GDP in 2024, while in the first nine months of 2025 it stood at 1.1% of projected GDP. Public debt as a share of GDP amounted to 61.3% at the end of 2024 and was slightly reduced to 60.8% by the end of the second quarter of 2025.
The banking sector remains solvent, liquid and profitable. Stable growth in deposits continued, reaching 6.1 billion euros at the end of September 2025 and accounting for the largest share of banks’ liabilities (78.8%). Total loans amounted to 5.36 billion euros at the end of September 2025, recording annual growth of 16.3%.
Cyclical risks are present and are reflected in credit growth and rising real estate prices, which have reached historical highs. To address these risks in a timely manner, at its meeting held on 18 December this year, the CBCG Council decided to extend the application of measures limiting the approval of cash loans to citizens for an additional one-year period. The CBCG will continue to monitor developments related to identified risks associated with rising real estate prices and excessive household borrowing and, if deemed necessary, will act through the application of macroprudential policy instruments.
The Council concluded that financial stability in Montenegro has been preserved, while emphasising the need for continuous monitoring of macroeconomic, financial and market factors in order to ensure timely and appropriate responses.