Montenegro’s Development Bank (RBCG) will not take on payment services or deposit-taking functions, according to proposed amendments to the Development Bank Law submitted by PES MPs Miloš Pižurica and Seid Hadžić. The original plan to allow RBCG to perform these banking functions had faced criticism from parts of the political and expert community, as well as international institutions, due to potential conflicts with commercial banking activities.
The law, initially passed in October last year, included a one-year deadline for the Ministry of Finance to issue implementing regulations. Finance Minister Novica Vuković and Central Bank Governor Irena Radović had previously highlighted that RBCG could not open client accounts or perform payment services without legal amendments.
Comparative EU experience shows that development banks generally do not conduct payment services or accept deposits unless they are established under banking law as credit institutions. Taking this into account, and following recommendations from international institutions, the amendments propose removing these powers to ensure the bank’s functional and operational stability.
The International Monetary Fund (IMF) has advised that RBCG focus on its core role: providing financing to businesses with limited access to commercial bank credit, especially during economic crises. The IMF cautioned against expanding into deposit-taking and payment services due to potential fiscal and financial risks.
RBCG was legally established on 1 January 2025, replacing the former Investment and Development Fund (IRF), and its role remains centered on supporting underserved market segments and ensuring liquidity for businesses.
