Economic analyst Predrag Zečević supports a time-limited solidarity contribution on banks’ clearly defined excess profits in Montenegro, while protecting the stability of the banking system. The eight leading banks earned more than 418 million euros in net profit over three years, he told Radio Montenegro.
High lending rates, rising income from fees and commissions, and very low interest on savings have enabled the sector’s high profitability, according to Zečević’s assessment. “Banks borrow money at high cost, while obtaining citizens’ and businesses’ money for very little compensation,” he said.
The difference between interest rates on loans and savings is more than 20 times, a spread Zečević compared with earnings from cocaine sales. He also objected to savers receiving only a small share of the benefit from bank business, despite their deposits providing the basis for lending and generating income.
Expensive housing and consumer loans leave households facing high borrowing costs, while businesses also struggle to access affordable capital. Zečević said banks gave insufficient support to the domestic economy, particularly manufacturing, small businesses and long-term investment. “We need banking that more strongly finances new jobs and value creation,” he said.
UCB bank was cited as a positive example for offering more reasonable interest rates on some fixed-term deposits. Zečević expects other lenders to improve their treatment of savers. “How socially responsible is it to earn so much while citizens struggle to secure housing and companies seek affordable capital?” he asked.
Italy introduced an extraordinary tax on banks’ increased net interest income in 2023. Banks could avoid paying it by allocating at least two and a half times the tax amount to non-distributable capital reserves.
For Montenegro, Zečević called for a precise domestic model that protects the banking system’s stability. He also urged controls to prevent banks from passing the contribution’s cost to customers through new fees. Revenue should go to support for vulnerable citizens, more affordable housing and development of the domestic economy. “Part of extraordinary earnings should serve the public interest,” he said.
