Bilateral Meetings Focus: CBCG Modernisation and Regulatory Reforms

25/10/2024

On the second day of the IMF and the World Bank Annual Meetings, CBCG Governor MsIrena Radović led the CBCG delegation during several bilateral meetings with central bank governors of the European System of Central Banks (ESCB).

During the meeting with Mr Klaas Knott, the Governor of De Nederlandsche Bank (DNB), Governor Radović expressed gratitude for DNB's support in strengthening the CBCG's institutional and regulatory framework and creating the preconditions for extending the geographical coverage of the Single Euro Payment Area (SEPA) to Montenegro that would result in benefits for Montenegrin citizens and the economy. In this context, they discussed enhancing cooperation to improve the regulatory framework to combat money laundering and terrorist financing.

The focus of discussions with Mr Madis Müller, the Bank of Estonia (BoE) Governor, was on leveraging BoE's experience in digitalisation and process automation as a model for the organisational transformation and modernisation of the CBCG. Both parties agreed to explore further cooperation in developing infrastructure to expedite the digital transformation of the CBCG and the overall Montenegrin financial system.

Governor Radović also met with the Bank of Spain (BoS) Governor, Mr Jose Luis Escriva, to discuss key aspects and challenges in Montenegro's integration into the Eurosystem. They highlighted the importance of aligning strategic priorities with European goals, focusing on stability and economic progress. Additionally, they agreed to continue cooperation in strategic planning, CBCG's modernisation, and a training program to acquire the skills necessary for CBCG's integration into the Eurosystem.

Governor Radović also attended the meeting of the Belgian-Dutch constituency, chaired by the Minister of Finance of the Netherlands, Mr Eelco Heinen. The DNB Governor Klaas Knott, the Chairman of the Financial Stability Board, noted that, despite numerous challenges, the global economy is showing signs of recovery and achieving modest growth. He highlighted that the banking system has attained a high level of resilience compared to the previous decade. However, challenges remain in the functioning of the non-banking segment of the financial system.

Mr Pierre Wunsch, Governor of the Bank of Belgium, summarised the results of the Belgian-Dutch Constituency in the previous four-year period and pointed to the progress and further directions of development of the Constituency member countries. He expressed his gratitude to Moldova, Montenegro, and Bosnia and Herzegovina, which hosted the annual Constituency meetings of central bank governors and finance ministers.

The meeting highlighted key risks to economic growth relating to high debt levels, geopolitical tensions, and growing market fragmentation. They saw solutions in implementing structural reforms, enhancing productivity and innovation, and establishing a solid climate strategy. The meeting concluded with the consensus that strengthening international cooperation is crucial for the long-term stability of the global economy.