Podgorica, (MINA-BUSINESS) – According to the Financial Stability Council, Montenegro preserved its financial stability last year, while the level of risk in the financial system remained moderate despite global geopolitical tensions and challenges from both the domestic and international environment. 

The Council stated in its annual report that the banking sector, as the dominant part of the financial system, demonstrated resilience and stability and continued to support the economy.

The Council, chaired by Central Bank (CBCG) Governor Irena Radovic, also reviewed the Information on Financial Stability for the first quarter of this year. According to the report, retail trade and industrial production recorded annual growth of 4.2 percent and 7.5 percent respectively, while a slight decline was noted in tourist arrivals and overnight stays, by 1.3 percent and 2.6 percent.

“The banking sector recorded stable growth in deposits, reaching €5.92 billion at the end of March. Total loans amounted to €5.59 billion euros at the end of March 2026, representing a year-on-year increase of 15 percent,” the Council stated in a press release. 

Lending growth was accompanied by a decline in non-performing loans and lending interest rates.

The share of non-performing loans in total loans stood at 2.43 percent at end-March 2026, while the average weighted lending interest rate decreased by 0.28 percentage points over the same period, reaching 6.13 percent.

“In the insurance sector, gross written premiums increased by 6.18 percent during the first three months of 2026 compared to the same period last year,” the Council reported. 

The Council concluded that the banking sector’s exposure to systemic risks remains moderate, alongside current cyclical risks (credit growth and rising real estate prices), which the CBCG continues to monitor closely, as well as elevated geopolitical risks.

The meeting was attended by Council members Novica Vukovic, Minister of Finance, Zeljko Drincic, President of the Capital Market Authority; and Marko Ivanović, President of the Council of the Insurance Supervision Agency. 

At the invitation of Radovic, the newly appointed Director of the Deposit Protection Fund, Andrija Radunovic also attended the meeting.