Banks in Montenegro

20 April 2020

Montenegro is a small country in Southeastern Europe, classified by World Bank as upper middle-income country. Montenegro is a service-oriented economy transitioning to a market system. Since 2002 Montenegro uses euro as its domestic currency unilaterally, though it is not an official member of the euro zone. Banking sector of Montenegro is characterized by relatively small size, small number of banks with wide business focus, high degree of concentration and high share of foreign capital.

Overview of Banking Sector of Montenegro

In 2019 there were 13 banks operating in Montenegro, including 4 domestic banks and 9 foreign-controlled banks. The foreign-controlled banks are originated from different European countries (Austria, Hungary, Italy, Serbia, Slovenia, Ukraine, Turkey).

Banking sector of Montenegro is highly concentrated: 5 largest banks comprise together about 65% of consolidated banking assets, each of the banks has market share of more than 10% of total banking assets. All of these banks are foreign-controlled.

In 2019 1 banks reported net loss, while the rest 12 banks reported net profit.

In December 2018, Central Bank of Montenegro placed Atlas banka AD Podgorica and Invest banka Montenegro AD Podgorica under temporary administration due to poor financial conditions of the two banks. In 2019 the both banks started bankruptcy procedure.

Banks in Montenegro operate as universal banks, providing a broad range of retail (savings products, current accounts, payment cards, consumer and business loans) and corporate banking (letters of credit, guarantees) products and services.

Investment banking solutions are provided by 3 banks ( Hipotekarna banka AD Podgorica, Prva banka Crne Gore AD Podgorica, Universal Capital Bank AD Podgorica ) include securities trading and custody services. Private banking is offered only by Crnogorska komercijalna banka AD Podgorica.

NameCountry of OriginMarket ShareServicesClients
Addiko Bank AD PodgoricaAT Austria4.94%retail banking
SME banking
business banking
natural persons
SMEs
companies
Adriatic Bank AD PodgoricaME Montenegro0.55%retail banking
corporate banking
natural persons
companies
Crnogorska komercijalna banka AD PodgoricaHU Hungary17.74%retail banking
private banking
SME banking
corporate banking
natural persons
companies
ERSTE Bank AD PodgoricaAT Austria13.14%retail banking
business banking
natural persons
companies
Hipotekarna banka AD PodgoricaIT Italy11.52%retail banking
business banking
investment banking
natural persons
companies
Komercijalna banka AD BudvaRS Serbia3.38%retail banking
SME banking
corporate banking
natural persons
SMEs
companies
Lovćen banka AD PodgoricaME Montenegro4.32%retail banking
business banking
natural persons
SMEs
companies
NLB Banka AD PodgoricaSI Slovenia11.89%retail banking
business banking
natural persons
companies
Podgorička banka AD PodgoricaHU Hungary11.79%retail banking
SME banking
business banking
insurance
natural persons
SMEs
companies
Prva banka Crne Gore AD PodgoricaME Montenegro8.52%retail banking
corporate banking
investment banking
natural persons
companies
Universal Capital Bank AD PodgoricaME Montenegro6.89%retail banking
corporate banking
investment banking
natural persons
companies
Zapad banka AD PodgoricaUA Ukraine3.52%retail banking
business banking
natural persons
companies
ZIRAAT Bank Montenegro AD PodgoricaTR Turkey1.80%retail banking
corporate banking
natural persons
companies
 

See Also

External Links

  1. Central Bank of Montenegro (external ref)