Intensified cooperation between CBCG and FinSAC announced
24/09/2024
The Governor of the Central Bank of Montenegro, Ms. Irena Radović, held a meeting with representatives of the Financial Sector Advisory Center (FinSAC) Mission, headed by Mr. Ismael Ahmad Fontana. FinSAC, which operates within the World Bank, provides technical assistance to countries in Europe and Central Asia region with the aim of strengthening their financial stability and banking system resilience.
The meeting discussions revolved around the intensification of cooperation between the CBCG and FinSAC with the aim of ensuring a further boost to financial stability through the strengthening of the Central Bank`s key functions and continued improvement of the regulatory framework.
The Governor Radović thanked the FinSAC team for their continuous support and presented the CBCG`s priority activities, highlighting the importance of further alignment with European directives, standards and best practices, especially in the areas of bank supervision and resolution.
“We must place a special focus on developing tools for assessing and managing climate and ESG risks in order to take timely measures to mitigate the systemic impact of these risks,“ said the Governor, adding that FinSAC support in this segment would be very significant for the CBCG.
The FinSAC representatives emphasized their readiness to continue supporting the CBCG in the aforementioned areas, including via crisis simulation exercises and assistance in the implementation of new legislative solutions, which would contribute to a further strengthening of Montenegro`s banking system resilience.
The cooperation between the CBCG and FinSAC began in 2013 with the NPLs resolution project and later on it was expanded to cover other issues in the field of financial stability. The previous cooperation of these institutions has contributed, inter alia, to the improvement of the crisis management framework, the strengthening of supervisory capacities, and the regulatory framework harmonisation with EU directives.