The Central Bank of Montenegro (CBCG) views European integration as a process that goes beyond the formal harmonization of legislation and involves building an institution capable of functioning at full capacity within the European financial and central banking system from the first day of membership, announced its Governor Irena Radović.
“Our goal is to position the Central Bank of Montenegro as an independent, credible and fully European institution that already brings concrete benefits of European integration to citizens and the economy. At the same time, we are aware that the final phase of the accession process requires strong institutions, effective supervision and continued close partnership with European institutions,” said Radović at a meeting with members of the European Parliament.
She discussed progress in the accession process with the Co-Chair of the EU-Montenegro Stabilisation and Association Parliamentary Committee, Thomas Waitz, and the European Parliament’s Standing Rapporteur for Montenegro, Marjan Šarec.
Radović stated that harmonization with European regulations is necessary, but that the real test of readiness will be the institution’s ability to consistently apply those standards and to function effectively within the European institutional architecture from the first day of membership.
The meeting presented the Needs Assessment project, which, in cooperation with the central banks of the Netherlands, Belgium and Germany and experts from the European System of Central Banks (ESCB), conducted a comprehensive assessment of the institutional, operational and functional readiness of the Central Bank of Montenegro for future membership in the ESCB and the Eurosystem.
The project’s findings and recommendations, as explained, represent the basis for the next phase of the CBM’s institutional transformation, including further strengthening of capacities in the areas of monetary policy, statistics, financial stability, supervision, information technology, cyber resilience, data management, and European coordination.
The meeting also discussed the contribution of the Central Bank of Montenegro to fulfilling obligations from the negotiation process, as well as the next steps in further harmonizing the Montenegrin financial system with European regulatory, institutional and operational standards.
Radović presented the results achieved by the Central Bank of Montenegro within the European agenda, in particular the contribution to the recent provisional closure of negotiation chapters 17 – Economic and Monetary Policy and 18 – Statistics, as well as progress in fulfilling obligations under Chapter 9 – Financial Services, the provisional closure of which is expected soon.
Special attention was paid to reforms that bring direct benefits from European integration to citizens and the economy, and in that context, Radović pointed out the importance of joining the Single Euro Payments Area (SEPA) and introducing domestic instant payments based on the European TIPS Clone platform.
She stated that these projects confirm that European integration has a direct and measurable impact on the quality of financial services, through lower costs, faster and more secure transactions, and stronger connections between Montenegro and the European financial market.
The meeting also discussed the importance of preserving the integrity of the financial system as one of the basic prerequisites for financial stability, the trust of citizens and investors, and successful integration into the single European market.
“In this context, the importance of strong and independent supervision, an efficient regulatory framework, consistent application of standards in the field of preventing money laundering and terrorist financing, as well as timely recognition and management of new financial and operational risks was highlighted,” the CBM statement said.
Radović said that the Central Bank of Montenegro is continuously undertaking concrete activities in these areas, through improving the regulatory and supervisory framework, strengthening supervisory capacities, increasing the operational and cyber resilience of the financial sector and further harmonization with European standards, which is already yielding visible results in strengthening the stability, security and credibility of the financial system.
Waitz and Šarec welcomed the progress of the Central Bank of Montenegro in fulfilling the European agenda and strengthening institutional capacities, assessing that strong, professional and independent institutions represent one of the key pillars of the successful completion of the accession process.
They added that the quality of reform implementation and the ability of institutions to assume the obligations of membership will be as important as the formal closure of negotiation chapters.
“The interlocutors agreed that the continuation of intensive dialogue with EU institutions, preserving the integrity of the financial system and timely preparation of institutions for assuming the obligations of membership will be of particular importance in the final phase of Montenegro’s European path,” the statement concluded.
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