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Economy and Banking Sector of Montenegro

Southeastern Europe
Population  (2017)
622 387  (0.00%)
EU Status
not a member, candidate since 2008
EUR (Euro)
Nominal GDP (2015)
3.6 bln EUR  (+0.03%)
Credit Ratings (as of Sep 2016)
Consolidated Banking Assets (2016)
3 790.91 mln EUR  (+9.30%)
Deposit Guarantee
50 000 EUR
Number of Banks

Montenegro is a country in Southeastern Europe (Balkan peninsula). Montenegro is a candidate for joining the European Union since 2008.

Montenegro is a middle-income country, with a service-oriented economy transitioning to a market system. Main sectors of Montenegrin economy are steelmaking, aluminum, agricultural processing, and tourism.

Banking sector of Montenegro is characterized by relatively small size, small number of banks operating as universal banks, high degree of concentration and high share of foreign capital.

List of Banks in Montenegro
Offshore Banking in Montenegro

National Currency

Euro (EUR)

Montenegro does not have its own currency: since 2002 Montenegro has been using Euro unilaterally.


Nominal GDP (2015)Nominal GDP per Capita (2015)Real GDP Growth (2015)
3.6 bln EUR  (+0.03%)5 826 EUR  (+0.05%)3.4 %  (2014: 1.8 %)

According to Eurostat, nominal GDP of Montenegro in 2015 was 3.6 bln EUR.

Montenegro outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.0% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 3.4% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2022 are IMF's estimates.

Real GDP Growth in Montenegro. Chart 1. Real GDP Growth in Montenegro. Source: Eurostat, International Monetary Fund.

In 2015, nominal GDP per capita in Montenegro was 5 826 EUR.

Montenegro has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -46.5% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2022 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Montenegro; European Union = 100. Chart 2. GDP Per Capita at Purchasing Power Parity in Montenegro; European Union = 100.

Inflation Rate

CPI, MoM (Jul 2016)CPI, YoY (Jul 2016)CPI, Year Average (2016)
0.6 %  (Jun 2016: 0.7 %)-0.5 %  (Jun 2016: -0.8 %)-0.3 %  (2015: 1.5 %)

According to , inflation rate in Montenegro in 2016 expressed as annual percentages of average consumer prices was -0.3% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.

Inflation Rate in Montenegro. Chart 3. Inflation Rate in Montenegro. Source: International Monetary Fund.

Credit Ratings (as of Sep 2016)

Fitch Moody's
- B1 (highly speculative), outlook negative

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Montenegro: 20 Signed Agreements

Montenegro signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Czech Republic
 United Kingdom

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Automatic Exchange: No Commitment to Start

Montenegro didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.

Further Information


Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Montenegro
IGA agreed on 30 June 2014, Model 1

Montenegro agreed in substance to use FATCA on 30 June 2014 (Intergovernmental Agreement Model 1): the text of the IGA has not been released and financial institutions operating in Montenegro are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that Montenegro continues to demonstrate firm resolve to sign the IGA as soon as possible.

Further Information

Financial Market Development

Financial Market Development
4.2 (max 7.0), 47th out of 138 countries
Banks' Soundness
4.3 (max 7.0), 93rd out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Montenegro is scored 4.2 out of maximum 7.0 and ranked 47th out of 138 analysed economies. Soundness of banks is scored 4.3 bringing Montenegro into the 93rd place, trustworthiness and confidence of financial market is scored 5.1 (24th place).

Financial Market Development in Montenegro. Chart 4. Financial Market Development in Montenegro. Source: WEF.

Deposit Guarantee Scheme

Maximum Protected Amount
50 000 EUR

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Montenegro are summarised in Table 1.

Scheme Participantsall credit institutions operating in Montenegro (including branches of foreign banks), branches of Montenegro's banks abroad
Eligible Depositorsnatural persons, entrepreneurs, legal entities
Covered Accountsall deposit accounts
Maximum Protected Amount50 000 EUR
Paid In CurrencyEUR

Table 1. Deposit guarantee scheme in Montenegro.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Euro) Foreign Currency
- B2 (highly speculative)

Foreign currency deposit ceiling for Montenegro is B2 (highly speculative).

Banking Sector Structure

Number of Banks
Consolidated Assets (2016)
3 790.91 mln EUR  (+9.30%)

Currently there are 16 credit institutions operating in Montenegro.

In 2016 consolidated banking assets in Montenegro were 3 790.91 mln EUR. The consolidated banking assets' evolution is shown at Chart 5 below.

Consolidated banking assets in Montenegro. Chart 5. Consolidated banking assets in Montenegro.

All the credit institutions operating in Montenegro can be classified into several categories. Table 2 summarises the number of banks in each category.

CategoryNumber of Banks
Central banks1

Table 2. Number of banks by category in Montenegro.