Offshore Banking in Montenegro

12 January 2017, updated 16 April 2019

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.

Despite carrying substantial risks and lacking innovative banking products especially in private and investment banking, Montenegro is becoming an increasingly popular offshore banking destination for several reasons:

However, there are also several drawbacks in offshore banking of Montenegro:

Overview of Banking Sector of Montenegro

In 2018 there were 13 banks operating in Montenegro, including 3 domestic banks and 10 foreign-controlled banks. The foreign-controlled banks are originated from different European countries (Austria, Hungary, Italy, Serbia, Slovenia, Azerbaijan, 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 2018 2 banks reported net loss, while the rest 11 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 Austria5.40%retail banking
corporate banking
residents
non-residents
Crnogorska komercijalna banka AD PodgoricaHU Hungary15.69%retail banking
private banking
SME banking
corporate banking
residents
non-residents
ERSTE Bank AD PodgoricaAT Austria11.81%retail banking
corporate banking
residents
non-residents
Hipotekarna banka AD PodgoricaIT Italy11.50%retail banking
corporate banking
investment banking
residents
Komercijalna banka AD BudvaRS Serbia3.23%retail banking
SME banking
corporate banking
residents
Lovćen banka AD PodgoricaME Montenegro3.87%retail banking
corporate banking
residents
non-residents
NLB Banka AD PodgoricaSI Slovenia11.10%retail banking
corporate banking
residents
NOVA BANKA AD PodgoricaAZ Azerbaijan0.59%retail banking
corporate banking
residents
Podgorička banka AD PodgoricaHU Hungary12.04%retail banking
SME banking
corporate banking
residents
non-residents
Prva banka Crne Gore AD PodgoricaME Montenegro8.99%retail banking
corporate banking
investment banking
residents
non-residents
Universal Capital Bank AD PodgoricaME Montenegro6.05%retail banking
corporate banking
investment banking
residents
non-residents
Zapad banka AD PodgoricaUA Ukraine2.06%retail banking
corporate banking
residents
non-residents
ZIRAAT Bank Montenegro AD PodgoricaTR Turkey1.50%retail banking
corporate banking
residents
non-residents
 

During the recent years, banks in Montenegro have been attracting deposits from both Montenegrin residents and non-residents, from both natural persons and legal entities. Non-resident deposits account for about 20% of total deposits, while deposits of foreign companies - about 10% of corporate deposits. Loans to non-residents comprise about 2-3% of total loans.

Resident and non-Resident Deposits in Montenegro Corporate Deposits in Montenegro Resident and non-Resident Loans in Montenegro

Opening Bank Account in Montenegro

9 banks (ouf of 13) offer non-resident accounts, usually to both natural persons and legal entities.

Normally, the banks require the following documents to open a non-resident account for a natural person:

Montenegrin banks do not allow online account opening, and it's necessary to visit a branch of the chosen bank; all of the banks provide online banking services to access the account.

NameDocumentsProcedureRemote AccessWebsite Languages
Addiko Bank AD Podgoricapassport
ID card
visit bank branchonline banking
mobile app
Montenegrin
Crnogorska komercijalna banka AD Podgoricapassport
ID card
visit bank branchonline banking
SMS service
phone
English
Montenegrin
ERSTE Bank AD Podgoricapassport
ID card
1. submit online application
2. get a callback from the bank
3. visit bank branch
online banking
Serbian
Lovćen banka AD Podgoricapassport
ID card
PEP form
visit bank branchonline banking
English
Montenegrin
Podgorička banka AD Podgoricapassport
ID card
PEP form
visit bank branchonline banking
mobile app
SMS service
English
Montenegrin
Prva banka Crne Gore AD Podgoricapassport
ID card
PEP form
visit bank branchonline banking
English
Italian
Montenegrin
Universal Capital Bank AD Podgoricapassport
ID card
visit bank branchonline banking
English
Montenegrin
Zapad banka AD Podgoricapassport
ID card
PEP form
USA form
visit bank branchonline banking
mobile app
English
Montenegrin
ZIRAAT Bank Montenegro AD Podgoricapassport
ID card
PEP form
visit bank branchonline banking
English
Montenegrin
Turkish
 

See Also

External Links

  1. Central Bank of Montenegro (external ref)