Montenegro Banking System Market: Industry Analysis and Forecast (2021-2027) by Type and Application

Montenegro Banking System Market Definition/Overview:

Montenegro's banking industry is totally privatised, with 13 privately held banks operating throughout the country. The banking industry operates on market conditions. Foreign investors can obtain credit on the local market and have access to a wide range of credit instruments, as the majority of Montenegrin banks are members of international banking groups.

The banking system market in Montenegro is segmented on the basis of service type into banks, insurance companies, MFIs, leasing companies and factoring companies. On the basis of regulator, the market is segmented into Central Bank of Montenegro, Insurance Supervision Agency and Capital Market Authority

Montenegro Banking System Market Dynamics:

Prior to the Covid-19 pandemic and during the financial crisis, the Montenegrin banking sector enhanced its capital position, liquidity, and asset quality, allowing it to more readily play its important role in reducing the crisis's impacts and reviving the Montenegrin economy. A solid level of bank liquidity was maintained during 2020 and the period after the pandemic announcement. Liquid assets were 1.57 percent higher at the end of October than they were at the end of the previous year, despite a 7.25 percent loss on an annual basis. At the same time, the loan-to-deposit ratio improved by 0.97 in October, reaching its highest level in the one-year period studied (0.98).

Recording lesser oscillations, loans increased during a one-year period, reaching €3.21 billion at the end of October 2020, up 7.3 percent from end-October 2019 and 4.7 percent from end-December 2019 (€3.06 billion). The composition of total loans by purpose has shifted slightly in favour of loans for refinancing liabilities to other banks, which climbed by 2.94 percentage points from 5.91 percent in October 2019 to 8.85 percent in February 2019. (October 2020). At the end of October 2020, these loans totalled €283.9 million, up 60.8 percent from the end of October 2019 and 57.6% from the preceding year. Given the real sector's and population's liquidity, as well as the difficulty of servicing the assumed liabilities, such a trend in loans was to be expected. The durability of the financial system's headline measures. Even said, it's plausible that forbearance measures are masking some latent deterioration in asset quality. In recent months, the Central Bank has withdrawn the majority of the crisis support measures it implemented in 2020. The Central Bank also undertook an independent asset quality analysis using data as of the end of 2019, indicating that the banking industry was in good shape at the start of the pandemic.

Client habits have changed as a result of the Covid-19 epidemic in banking services. Immediately after the pandemic was declared, banks took steps to protect the health of their workers and clients while continuing to do business. Banks have increased the maximum amount of money that may be withdrawn from ATMs without inputting a PIN for contactless payments. They also temporarily eliminated costs for using electronic and mobile banking services, and several banks also eliminated fees for withdrawing cash with debit cards at ATMs operated by other banks.

Montenegro Banking System Market Segment Analysis:

On the basis of service type, the banking system of Montenegro is dominated by the banks at 38% by share out of the 32 financial institutions. This is projected to continue during the forecast period as well. The banking service type is followed by insurance which is also projected to witness significant growth during the forecast period. Microfinance Institutions and leasing companies are also projected to witness significant growth.

On the basis of regulators, the Central Bank of Montenegro is projected to dominate the banking market as it regulates banks, microfinance institutions, and institutions that engage in leasing, factoring, receivables acquisition, and credit-guarantee operations. All the aforementioned services hold majority of market share of Montenegro banking system and are projected to do so during the forecast period as well.  Insurance businesses are supervised by the Insurance Supervision Agency, whereas investment funds are supervised by the Capital Market Authority.

The objective of the report is to present a comprehensive analysis of the Montenegro Banking System market to the stakeholders in the industry. The report provides trends that are most dominant in the Montenegro Banking System market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Montenegro Banking System Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

The qualitative and quantitative data provided in the Montenegro Banking System market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Montenegro Banking System market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Montenegro Banking System market.

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Montenegro Banking System market. The report also analyses if the Montenegro Banking System market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Montenegro Banking System market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Montenegro Banking System market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Montenegro Banking System market is aided by legal factors.

Montenegro Banking System Market Scope:

Montenegro Banking System Key Players:  

• Crnogorska komercijalna banka AD Podgorica
• ERSTE Bank AD Podgorica
• Hipotekarna banka AD Podgorica
• NLB Banka AD Podgorica
• Prva banka Crne Gore AD Podgorica
• Universal Capital Bank AD Podgorica
• Lov?en banka AD Podgorica
• Ziraat Bank Montenegro AD Podgorica
• Adriatic Bank AD Podgorica
• Zapad banka AD Podgorica