PRESS RELEASE
05/11/2026
At a meeting chaired by Governor Irena Radović, the Council of the Central Bank of Montenegro adopted instruments to further enhance the regulatory framework, strengthen financial stability and promote responsible lending.
The adopted Macroprudential Policy Framework sets out the objectives of this policy, the approach to identifying and assessing systemic risks, and the selection and implementation of measures to mitigate them. The Framework is based on Montenegro’s legislation in force and is aligned with the recommendation of the European Systemic Risk Board (ESRB).
The Council also adopted the Decision on Macroprudential Measures Relating to Consumer Lending, introducing uniform standards for borrowers’ debt service-to-income ratios, loan maturities and collateral values. The Decision aims to promote sustainable lending, improve credit risk management practices and safeguard the long-term stability of the financial system.
The Decision stipulates that a borrower’s monthly debt service payments may not exceed 45% of their income for non-housing consumer loans, or 50% for housing loans. The maximum repayment period is ten years for non-housing consumer loans and 30 years for housing loans. The amount of a housing loan may not exceed 90% of the value of the property provided as collateral.
The Decision also allows banks to depart from the prescribed lending conditions, with recognition given to individuals meeting their housing needs for the first time by purchasing, building or renovating a flat or family house for their own residential use.
Banks will apply the new rules from 1 January 2027, while continuing to assess each borrower’s creditworthiness individually, in accordance with the applicable legislation and their internal risk management policies.
The adoption of these instruments marks a continuation of the CBCG’s efforts to enhance the regulatory framework and align it with European standards, as part of preparations to join the European System of Central Banks. The adoption of the Decision also fulfils part of the recommendation set out in the Conclusions of the Economic and Financial Dialogue with the European Union of May 2025, in line with the ESRB’s recommendations on macroprudential policy.
The Council also adopted the Inflation Report for H1 2026, as part of its regular monitoring of macroeconomic indicators.
At the meeting, the Council also adopted the amended decisions governing reporting by credit institutions and other financial institutions to the CBCG, including reporting forms, data requirements and submission deadlines and discussed other issues within its remit.