The 73rd session of the Financial Stability Council, chaired by Dr. Irena Radović, Governor of the Central Bank and Chair of the Council, was held today. The session was attended by Council members: Novica Vuković, Minister of Finance; Željko Drinčić, President of the Capital Market Commission; and Marko Ivanović, President of the Insurance Supervision Agency Council.
The Council reviewed the 2024 Annual Report on its work. It was concluded that financial stability was preserved throughout the previous year, while systemic risks remained mostly moderate despite global geopolitical tensions. The banking sector demonstrated resilience and supported the economic recovery.
The Council also examined the Financial Stability Information for the first quarter of 2025. Data indicates lower growth rates in construction and retail trade, along with a decline in industrial production and transport. Tourist arrivals increased by 4.4%, but overnight stays decreased by 9.9%.
Total loans at the end of April 2025 reached 5.03 billion euros, marking a 15% increase compared to the same period last year. This growth was accompanied by a reduction in non-performing loans (NPLs) and active interest rates. The NPL ratio declined to 2.99%, down by 1.76 percentage points from April 2024, while the average weighted active interest rate fell by 0.27 percentage points to 6.37%.
In the insurance sector, gross invoiced premiums grew by 8.21% during the first four months of 2025 compared to the same period in the previous year.
The Council assessed that the banking sector’s exposure to systemic risks remains moderate, although there is a noted increase in cyclical risks, especially those related to rising real estate prices, which have reached historic highs. These risks require close monitoring.
To enhance the digital operational resilience of Montenegro’s financial system, the Council supported the Central Bank’s initiative to begin aligning domestic legislation with the EU’s Digital Operational Resilience Act (DORA), which sets uniform requirements for the security of network and information systems supporting financial institutions.
