The Central Bank of Montenegro (CBCG) imposed fines totaling 830,700 euros on banks last year for the first time in its history, targeting anti-money laundering and counter-terrorism financing violations. Governor Irena Radović presented these results before the parliamentary Committee on Economy, Finance, and Budget. She noted that several disputes are ongoing regarding multi-million euro penalties and that stricter regulations now allow fines of up to five million euros.
In total, CBCG conducted six direct and three thematic inspections, issued 16 supervisory measures, and carried out 14 direct controls of banks and five financial service providers, resulting in fines of 1.52 million euros.
Banking sector performance remained strong. Total bank assets exceeded seven billion euros, capital reached 890.9 million euros, and loans grew by 13.3%, four times the projected GDP growth. Newly approved loans totaled 1.9 billion euros, deposits increased by 6.68%, and the capital adequacy ratio stood at 19.38%, well above the legal minimum of 8%. Non-performing loans fell to 3.51%, the lowest in 15 years. Interest rates decreased by nearly two percentage points following voluntary reductions by banks.
Regarding governance, the parliamentary vote did not approve Radović’s proposed vice-governor candidates. She intends to reinitiate discussions to ensure compliance with EU recommendations, which is critical for closing EU negotiation chapters.
Vice-Governor Nikola Fabris highlighted that public debt is manageable for this and next year, with 2027 presenting a bigger challenge when over one billion euros is due. The gross public debt ended last year at 61.32%, slightly above the Maastricht criterion of 60%.
Fabris also noted that July inflation at 4.5% is above target but not alarming. Due to Montenegro’s fixed monetary regime, CBCG cannot directly influence inflation. He recommended considering stronger competition policies to prevent market abuses by dominant retail chains.
The parliamentary committee will later review CBCG reports on financial stability and price stability, alongside reports from the Financial Stability Council over the past three years.
