As of the end of April, deposits from non-residents in Montenegrin banks totaled approximately €1.131 billion, marking a decline of €118 million or 9.45% compared to the previous year. This reduction has resulted in their share of total banking deposits decreasing from 22.09% to 19.29%.
In contrast, total banking deposits have seen an increase of 3.68% year on year, reaching about €5.865 billion. Notably, household deposits accounted for 42.4% of the total, amounting to €2.487 billion, which reflects a year-on-year growth of 13.08%. Additionally, deposits from the non-financial corporate sector were approximately €1.616 billion.
The drop in non-resident deposits has not led to immediate liquidity issues within the banking system, as domestic household balances are showing robust growth. The funding structure is becoming less reliant on foreign depositors, enhancing resilience as domestic deposits remain stable.
This trend warrants ongoing observation, particularly concerning real estate transactions, foreign company activities, and capital inflows. A continued decrease in non-resident balances could signify a normalization following previous inflows, shifts in banking client demographics, or reduced external liquidity entering Montenegro.
Furthermore, Montenegro is set to introduce its national instant-payment service on 20 July. The necessary technical and operational frameworks have reportedly been established; however, finalization of legislative amendments remains pending. Successful deployment is expected to streamline settlement times and bolster digital payment capabilities, although the actual impact will depend on bank pricing strategies and merchant adoption rates.
