Montenegro

Despite experiencing strong growth prior to the financial crisis, Montenegro’s financial sector remains small on a global scale. The privatization of the banking sector and domination of foreign banks in Montenegro increased competition and enabled a rapid increase in financial intermediation. Banks’ pre-crisis loan portfolios reached 90 percent of GDP in 2008, among the highest ratios in SEE. However, credit growth was uncontrolled and fueled the high current account deficit, high indebtedness, increasing non-performing loans and, later, led to a credit crunch that deepened the recession. The level of deposits as a percentage of GDP was well above other SEE countries during the pre-crisis period but dropped to levels seen in other countries after the banking crisis.

 Publications

• Click here to download Montenegro High Level Financial Sector Overview October, 2011
• Click here to download Montenegro High Level Financial Sector Overview May, 2011
  
• Click here to download Regional Financial Sector Benchmarking Report October, 2011