Recent data from the Central Bank of Montenegro reveals that the banking sector has entered 2026 with robust liquidity buffers, despite increasing corporate arrears affecting the real economy. This situation indicates a divergence between the financial health of banks and the operational challenges faced by many domestic enterprises.
Banks are reporting capital adequacy and liquidity ratios that exceed regulatory requirements. The stability of deposit bases is bolstered by household savings and public-sector cash reserves, while non-performing loan ratios remain low compared to regional counterparts. These metrics suggest that systemic financial stability is not currently at risk, according to the central bank’s assessment.
Nevertheless, there is a noticeable decline in corporate payment discipline. Small and medium-sized enterprises are experiencing rising arrears, particularly in sectors such as construction, trade, and tourism-related services. These companies are grappling with increasing labor costs, persistent high input prices, and limited ability to adjust pricing, particularly in regulated or competitive markets. Consequently, many firms are resorting to delayed payments to suppliers and tax authorities as a means of managing liquidity.
This scenario presents a selective risk environment for banks rather than a widespread credit crisis. Banks’ exposure to financially weaker firms is generally limited, as lending practices have shifted towards better-capitalized corporations, households, and state-associated projects. Tighter credit standards have enhanced balance-sheet resilience but have also restricted refinancing possibilities for struggling businesses.
The implications of this trend extend to the macroeconomic landscape. While financial stability remains intact, the conservative approach to credit allocation fosters a bifurcated economy. Stronger companies continue to have access to financing, whereas weaker businesses may face insolvency or stagnation. Over time, this could hinder investment and productivity growth, even without triggering a banking crisis.
