At a Vienna conference on financial stability, digital finance and artificial intelligence, Central Bank of Montenegro Governor Irena Radović identified the interaction between external shocks and domestic vulnerabilities as a key challenge for Montenegro. She called for early risk identification, macroprudential measures and adequate banking system buffers as rapid credit growth and rising property prices require closer monitoring. Radović said tourism developments, energy prices and global financial conditions could affect revenues and financing costs. While non-bank financing could diversify capital sources, she stressed the need to monitor cross-border risks and investment concentration in major financial centers. She also linked stronger institutions and financial system resilience to domestic reforms, the European Union accession process and favorable international conditions.
Central Bank of Montenegro Governor urges close monitoring of credit growth, property prices and external risks
Central Bank of Montenegro Governor Irena Radović called for close monitoring of rapid credit growth, rising property prices and risks from external shocks. She emphasized early risk identification, macroprudential measures and adequate banking buffers, while noting that non-bank financing could diversify capital sources but also create cross-border and concentration risks.