Governor Radović Meets with a Member of the Executive Board of Deutsche Bundesbank: Strengthening Cooperation ahead of ESCB Membership

21/07/2025

Mr. Burkhart Balz, a Member of the Executive Board of the Central Bank of the Federal Republic of Germany (Deutsche Bundesbank), paid an official visit today to the Central Bank of Montenegro (CBCG) where he met with the Governor, Ms. Irena Radović, and her team.

Avenues for further deepening of bilateral cooperation were discussed during the meeting, with particular emphasis placed on strengthening the institutional and regulatory capacities of the CBCG in the context of European integration and alignment with the standards of the European System of Central Banks (ESCB).

Governor Radović underlined that the European agenda remains a top priority for the CBCG and that the institution has been undertaking intensive activities aimed at harmonizing the regulatory framework and practices with the EU acquis.

“Our strategic commitment to European reforms is not merely declarative but fundamentally substantive. Over the past nineteen months, the Central Bank has achieved concrete and measurable results in advancing the European agenda — from contribution to nine negotiation chapters, over the successful integration into the Single Euro Payments Area (SEPA) and active preparations for accession to the TIPS system, over to decisive measures to combat money laundering and the financing of terrorism — efforts that have earned us strong support from our European and international partners”, stated Governor Radović. She added that the long-standing expert and technical support from Deutsche Bundesbank has been of vital importance in enhancing the regulatory and operational capacities of the CBCG.

In this regard, special emphasis was placed on the importance of continuing cooperation through the forthcoming third phase of the regional IPA project, aimed at strengthening the capacities of central banks in the Western Balkans and coordinated by Deutsche Bundesbank. Attention was also drawn to the new twinning project, “Support to Regulation of Financial Services in Montenegro,” scheduled to commence in September this year, with Deutsche Bundesbank serving as a key partner. This project aims to further align the national regulatory framework with EU acquis in areas governing banking supervision, resolution of credit institutions, and payment systems. It was noted that the CBCG has already achieved a high degree of compliance with the applicable EU regulations and that this project will ensure timely adjustments to new European directives and standards.

Mr. Balz welcomed the reform efforts undertaken by the CBCG and stressed the importance of continuous strengthening of regulatory and institutional capacities, openness to regional and international cooperation, and the independence of the institution, highlighting that “the independence of the Central Bank has been recognized as the cornerstone of a stable financial system and a prerequisite for sustainable economic growth, especially in the context of European integration.” He further emphasized that regional support programs and exchange of expertise represent effective mechanisms for alignment with European standards and best practices of the ESCB.

Highlighting that the long-standing bilateral cooperation between the CBCG and Deutsche Bundesbank exemplifies a successful partnership based on trust and shared European goals, Governor Radović and Mr. Balc agreed to continue the strategic dialogue and deepen cooperation, with particular focus on exchanging expertise in central banking, payment infrastructure, and financial stability.

The meeting concluded with a joint assessment that the EU`s support program for strengthening central banks’ capacities in the region, implemented under the leadership of Deutsche Bundesbank and with the support of the Eurosystem, constitutes an important framework for further institutional empowerment. The parties also expressed openness to expanding cooperation on other topics of mutual interest.

Today’s meeting came as a follow-up to Governor Radović’s visit to Deutsche Bundesbank in December, which was held at the invitation of the President of Deutsche Bundesbank, Mr. Joachim Nagel.

Statement of the Governor, Ms Radović

Statement of Mr. Balz

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