Meeting of the CBCG and the Single Resolution Board
18/07/2024
The Governor of the Central Bank of Montenegro, Ms Irena Radović, met today with the permanent member of the Single Resolution Board (SRB), Mr Jesús Saurina. The SRB is the resolution authority within the Banking Union, whose mission is to ensure an orderly resolution of failing banks, protecting the taxpayer from state bail-outs, which is promoting financial stability. ensure the effective rehabilitation of credit institutions that have difficulties in doing business, through close cooperation with the European Commission, the European Central Bank, the European Banking Regulator and national authorities.
The Governor Radović presented the CBCG`s activities on the alignment of national legislation with European directives, with a particular focus on the regulations governing bank resolution. After receiving positive opinions from the European Commission, the Law Amending the Law on Resolution of Credit Institutions and the Law Amending the Law on Bank Bankruptcy and Liquidation, both prepared by the CBCG, were sent to parliamentary procedure in mid-July. The enactment of these laws and the adoption of a set of secondary legislation will provide for a full alignment of the Montenegrin legislation with the European regulatory framework governing the resolution of credit institutions.
“Through intense activities on the harmonisation of the national legislation with the relevant EU acquis communautaire, as well as on continuous strengthening of internal capacities, we have been creating the conditions for implementing the resolution of credit institutions, whilst preserving financial stability and limiting the negative impact on taxpayers and the real economy to the lowest possible extent,” said the Governor.
Mr. Saurina commended the progress achieved in improving the national legislation, stressing the willingness of the SRB, with which the CBCG has signed a cooperation agreement, to provide support in further improvement of the national resolution framework.
The meeting participants highlighted the importance of information exchange and the need for closer cooperation between the two institutions.
As a part of his visit to the CBCG, Mr. Saurina met with the Vice-Governor, Mr Nikola Fabris, Director of the Supervision Department, Mr Milan Remiković, and heads of some other organisational units.
The Single Resolution Board manages the Single Resolution Mechanism, which was established in 2016, and which includes the national resolution authorities of all member states of the Banking Union and presently consists of 20 eurozone countries and Bulgaria.