CBCG presents key results of its work, and its priorities and plans for the upcoming period
15/12/2025
The key results of the CBCG’s operations in 2025 were presented at today’s press conference, along with an overview of priorities and plans for the upcoming period.
Strong reform steps and alignment with EU standards
Governor Irena Radović emphasised that 2025 was marked by further strengthening of financial stability, strong reform momentum, and the continuity of activities aimed at alignment with the standards of the European System of Central Banks (ESCB).
“The first SEPA (Single Euro Payments Area) transactions from Montenegro, preparations for joining the European instant payments infrastructure, and the fulfilment of the closing benchmarks for closing negotiating chapters 4 – Free Movement of Capital and 9 – Financial Services marked 2025. At the same time, we worked intensively on strengthening supervisory policies and further aligning the domestic regulatory framework with the EU acquis, thereby confirming our full commitment to meeting the requirements for the future functioning of the CBCG within the ESCB,” Governor Radović stated.
Stability of the banking sector
The Governor particularly pointed out that, owing to consistent supervision and the application of appropriate supervisory and macroprudential measures, stability has been enhanced, liquidity remains high and capitalisation is strong, while the confidence of households and businesses is reflected in the growth of key balance-sheet items – assets, loans, capital and deposits.
According to data for the first eleven months of the current year, banks’ total assets amount to 7.7 billion euros, which is almost equal to the estimated GDP for 2025. Banks’ capital stands at 1 billion euros, representing a 10% increase on a year-on-year basis. Over the same period, loans increased by 15%, which is almost four times higher than the projected GDP growth rate. Deposits rose by nearly 5%. The banks’ solvency ratio stands at 19.39%, more than double the statutory minimum of 8%. Non-performing loans account for 2.78% of total loans, marking their lowest level in the past 15 years. The weighted average effective interest rate on new loans granted to households is 6.93%, its lowest level in the past 10 years. The weighted average effective interest rate on new loans granted to the corporate sector has been declining over the past three years and currently stands at 5.21%.
“These indicators confirm that the banking sector remains one of the key pillars of our financial stability and a strong engine of development for the Montenegrin economy,” the Governor concluded.
Modernisation of Payment Systems
The Governor further emphasised that, in 2025, the most significant upgrade of the payment system since the establishment of the domestic payment system in 2005 was implemented. The CBCG payment system has been fully aligned with the ISO 20022 standard for international payments, which, together with the introduction of online clearing and new functionalities, has resulted in faster, safer and more accurate transaction processing.
Since 7 October 2025, Montenegro has become operationally part of the SEPA area, marking a major step towards the country’s closer integration with the European Union and enabling citizens and businesses to make safer, faster and cheaper payments with 40 European countries. Prior to the introduction of SEPA, the average fee for a SWIFT transaction amounted to 73.4 euros. Data from the first two months of SEPA implementation show that the average fee for electronically executed SEPA transactions is 2.24 euros for individuals and 6.4 euros for businesses. The operating hours of payment systems have been extended until 8 p.m., including weekends and public holidays (which represents an additional 118 operating days per year), reducing the average transaction processing time by more than 10 hours and releasing approximately 32 million euros in capital for the economy. Fees in the national payment system have been halved, higher fees previously applied to afternoon transactions have been abolished, and banks are required to pass on the benefits of reduced costs to their clients.
In cooperation with Banca D-Italia, the ECB and central banks in the region, the CBCG continues the implementation of the TIPS Clone project, aimed at establishing a national instant payment system. The system is scheduled to become operational in July 2026 and will enable real-time transactions, 24 hours a day, seven days a week, throughout the year. TIPS Clone is designed as a low-cost system, with minimal fees for individuals and significantly lower costs for businesses, ensuring that the resulting savings remain available to citizens and the economy for consumption, savings or new investments. The total economic effects of the payment system reforms (SEPA + TIPS Clone) are estimated at 160 million euros annually, or approximately 2.3% of GDP.
Aligning the Domestic Regulatory Framework with EU Regulations
In 2025, intensive activities aimed to achieve full harmonisation of the domestic regulatory framework with the European Union acquis. Eight laws and several dozen by-laws governing banking operations were finalised, all fully aligned with the relevant EU directives and regulations (CRR III/CRD6, DORA, MiCA, BRRD II, EMIR 3), some of which will only start to be applied in EU Member States from 2026. Through this process, the CBCG has fulfilled all its obligations for the provisional closure of negotiating chapters 4 – Free Movement of Capital and 9 – Financial Services, while the consistent application of the new rules will further strengthen the banking system-s resilience and stability.
It was also announced at the conference that the European Banking Authority (EBA) has initiated an assessment of the equivalence of Montenegro’s regulatory and supervisory framework with EU standards, opening the possibility for Montenegro to obtain equivalent-country status in 2026. This would bring significant benefits to the financial sector and the overall economy, primarily through the potential improvement of the country’s credit rating and, consequently, cheaper borrowing on international markets.
Consumer Protection and Financial Inclusion
Throughout 2025, the CBCG continued to strengthen the protection of users of financial services. The new Law on Consumer Credit, in force since November 2025, sets a maximum permissible effective interest rate on consumer loans and abolishes fees for the processing of housing loans as well as for their early repayment. The CBCG Council adopted 10 by-laws to ensure the clear application of the law and to enhance lending transparency. Intensive activities are also being undertaken to improve financial inclusion, particularly for the most vulnerable groups of citizens, through the promotion and wider use of basic payment accounts, which enable recipients of social benefits to access essential banking services in a safer, simpler and free-of-charge manner. A comprehensive survey on customer satisfaction with banking services is also being conducted, with the aim of further improving the quality, accessibility and transparency of services in the banking sector.
Financial Literacy and Investment in Knowledge
In 2025, the CBCG remained committed to enhancing financial literacy. Through the Financial Education Development Programme 2023–2027, the implementation of which is coordinated by the CBCG, a wide range of educational activities were carried out for children, young people, teachers and the general public. Particular emphasis is placed on the national programme Robotics for the Youngest, implemented in partnership with the Ministry of Education, Science and Innovation and the Innovation Fund. With financial support from the CBCG, educational robots were procured for all 163 primary schools in Montenegro and accredited teacher training programmes were introduced, while the first national competition, “RoboFin”, brought together more than 200 children from across Montenegro.
Economic Empowerment of Women
The CBCG also led strategic programmes aimed at the economic empowerment of women – Women on Boards and the WE Finance Code.
The objective of the Women on Boards programme is to strengthen women’s leadership potential in Montenegro and to prepare the business environment for the implementation of the EU directive on gender-balanced representation in key economic decision-making positions, which will become binding for all EU Member States from 2026. Two programme cycles have been successfully completed to date by 42 participants, who now form a strong network of women leaders, while preparations are under way for the launch of the third cycle.
The global WE Finance Code initiative, which Montenegro joined among the first countries in the world, aims to improve access to finance for women-led businesses. Within this project, the national WE Finance Code Dashboard platform was developed - the first of its kind in the region - enabling the monitoring of data by enterprise size and ownership gender. This tool increases the visibility of women’s entrepreneurship and provides a solid basis for designing targeted policies and measures.
Sustainable Finance and ESG Standards
Activities continued to align Montenegro’s financial system with European and global sustainable development standards and ESG principles, notably through the adoption of the Roadmap of the Financial Sector towards Sustainable Finance. This document lays the foundations for the development of green financial products and the inflow of sustainable capital, which in practice means more favourable financing conditions for businesses and support for the energy and environmental transition. A by-law was also adopted to align the framework with the European Banking Authority’s guidelines on the management of ESG risks.
Institutional Strengthening and Preparations for EU/ESCB Membership
With the aim of being organisationally strengthened and fully prepared for Montenegro’s accession to the European Union, the CBCG initiated a comprehensive analysis of the current state and an assessment of the needs for alignment with ESCB and Eurosystem standards. This analysis, conducted by the central banks of Belgium, the Netherlands and Germany, will identify areas for improvement and define clear reform priorities in line with European central banking standards. Upon its completion, reforms will be implemented across all organisational levels. During 2025, efforts were also focused on improving recruitment procedures, strengthening corporate culture, and enhancing employees’ professional competencies through training programmes and pilot projects based on ECB methodology.
Financial Operations and Independence of the CBCG
It was emphasised that the CBCG is a financially independent institution that does not rely on the state budget, but instead covers all its costs from its own revenues, primarily generated through the management of international reserves and the provision of services to the banking and financial sector.
Support for Innovation and Digitalisation
The CBCG supported the organisation of the hackathon “Digital Inclusion: An Account that Empowers”, hosted by the Science and Technology Park, thereby contributing to the development of innovative fintech solutions, the strengthening of digital and financial literacy, and the enhancement of financial inclusion, i.e. the accessibility of financial services for all citizens.
At the same time, the CBCG remains strongly committed to the digitalisation and modernisation of its internal processes and is actively working on the application of artificial intelligence-based solutions in order to increase the efficiency, quality and resilience of the institution’s operations.
Social Responsibility
The CBCG supported the opening of the Europe House in Bijelo Polje by making its premises available, thereby contributing to the promotion of European values and improving access to EU policies for citizens in northern Montenegro.
Recognising that environmental protection, education of the youngest generations and social responsibility form the foundation of long-term, sustainable economic development, the CBCG supported the national campaign “Protect It So It Protects You”. Through this initiative, the CBCG invests in the development of environmental awareness, financial literacy and civic responsibility among children, contributing to the creation of a stable and prosperous society.
The implementation of the AcKnowledge the Knowledge scholarship programme for young talents continued, and the CBCG joined the national platform Scholarships for the Best, Work with the Best. Through these two initiatives, the CBCG awarded scholarships to 14 top-performing students from Montenegrin universities. Traditionally, the CBCG also rewards the best undergraduate, master’s and doctoral theses in the fields of banking and monetary policy and theory.
Vision for Further Development and CBCG Priorities
“With a clear vision of an independent, modern, innovative and transparent central bank acting in the interest of citizens and the economy, we continue to build an environment in which the financial system serves as a pillar of Montenegro’s sustainable development,” Governor Radović stated, announcing that in the coming period the CBCG’s activities will focus on further strengthening the financial system, its modernisation and integration into the European framework, and the application of the highest financial standards, in order to provide citizens with safer and more modern financial services and to enable faster, cheaper and more efficient financial flows for the economy.
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