Governor Radović Participated in the IMF and Bank of Slovenia Conference
18/05/2024
The CBCG Governor, Ms Irena Radović, attended the high-level conference Financial Systems in the CESEE Region, organised by the International Monetary Fund and the Bank of Slovenia in Portorož.
The conference, attended by senior IMF officials and the central bank governors of the Central, Eastern and Southeastern Europe (CESEE) region, discussed the current situation of the region’s financial systems and how to strengthen their contribution to economic development.
The conference highlighted the financial sector’s critical role in supporting the economies of all CESEE countries. Despite progress, business and investment financing in these countries is still less developed compared to other European Union countries, especially compared to the USA. The capital market’s potential is not sufficiently used, and there are limited financing possibilities through capital channels such as angel and venture. Considering the above, the participants of the Portorož event concluded that further development of the CESEE countries’ financial sector would contribute to their higher economic growth rates and that challenges require attention and joint action. In this sense, it is necessary to further develop and promote the capital market through more intensive cooperation and exchange of experiences and best practices among the region’s countries. The Capital Markets Union (CMU) plays an essential role in these processes, and one of its main goals is the creation of a single capital market among EU member states, which will enable the free movement of capital and investments for the benefit of citizens, companies and investors throughout the European Union.
During this meeting, central bank governors of the CESEE countries held a working session with Mr Alfred Kammer, the Director of the IMF’s European Department, where they discussed the inflation trends and the monetary policy challenges in the region and globally.
At the meeting with Mr Kammer, Governor Radović pointed out that a “solid” macroeconomic basis, a well-designed macroprudential policy, adequate risk management in the banking sector, and effective communication are of great importance considering limited monetary policy instruments in Montenegro. The Governor also highlighted the CBCG’s significant efforts to harmonise national regulations with EU regulations further, with planned amendments to the Law on Credit Institutions, the Law on Additional Supervision of Financial Conglomerates and the Payment System Law with the accompanying set of by-laws regulations in the coming period. “This confirms the CBCG’s commitment to the reform agenda and other activities contributing to the convergence of the regulatory and supervisory framework with the EU,” said Radović.
In her presentation, the Governor also noted the importance of pursuing a sound monetary policy in the CESEE region, stressing that this requires a comprehensive understanding of local specificities, commitment to regional cooperation and a proactive approach to solving challenges.
In addition to senior IMF officials and central bank governors of the region, the event in Portorož brought together leaders and experts of numerous international institutions - the European Commission, the European Banking Authority (EBA), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), Organisation for Economic Cooperation and Development (OECD), and representatives of public administration, academia and private financial and consulting companies.