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09/11/2017

The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD, takes part in the international conference entitled "Banking developments and financial market infrastructure", which is being held today in Tirana, organized by the Bank of Albania and the University of Oxford.

The conference, opened by the President of Albania, Mr Meta, Governor of the Bank of Albania, Mr Sejko, Minister of Finance and Economy of Albania, Mr Ahmetaj and representative of the Oxford University, Mr Anastasakis, gathered the governors and other representatives of the central banks of the region, senior IMF and the World Bank officials, as well as a number of experts in the field of monetary and economic policy. Participants discussed domestic and international risks to the stability of the banking system, with a focus on the countries of South Eastern Europe, as well as the challenges these risks pose for central banks. Experiences on the manners to overcome these challenges were exchanged as well as the policies implemented by individual countries with the aim of strengthening financial stability. The conference also discussed macroeconomic trends in South East European countries and their relationship with the European Union.

Within the Governor's Panel, the Governor Žugić emphasized that the CBCG pays special attention to strengthening the regulatory framework governing banking operations with the aim of harmonizing Montenegrin legislation in this field with the relevant European directives. "The objectives that will be achieved through the reform of banking laws are primarily reflected in the further strengthening of stability and the development of the financial system. This creates the conditions for Montenegro to meet the requirements of the negotiation process, but also strengthen the resilience of banks, as well as the real sector, to the potential risks that Montenegro, as a small and open economy, is exposed to", emphasized Governor Žugić. As the presentation continued, he presented to participants of the conference the most important parameters that characterize the banking system in Montenegro as well as the most important CBCG activities related to financial education and inclusion. Positive trends in the financial sector were confirmed by international institutions, especially highlighting a strong reduction in the level of non-performing loans, a high level of liquidity in the banking sector, and a solvency that exceeds the legal minimum.

Today's conference concluded that, in order to adequately respond to the challenges the region is facing, coordination of monetary and fiscal policy is required, financial stability being a prerequisite for economic growth and development.