The Panel of Regional Central Bank Governors held in Bečići

15/06/2024

A part of the Regional Summit of Finance Ministers, Governors and Tax Administration Directors, which started yesterday in Bečići, was a panel of regional central bank governors titled “How to maintain price stability and the banking sector in uncertain times”.

Opening the panel, the CBCG Governor, Ms Irena Radović, emphasised that ensuring financial stability and encouraging sustainable growth are common priorities of the region’s countries. On the other hand, the region faces numerous challenges, such as slow economic growth, inflationary pressures, an uncertain geopolitical situation and climate change, and different still insufficiently-analysed risks stemming from accelerated technological development and artificial intelligence.

“To adequately address these risks, spreading beyond the borders of individual countries, we need quality national policies, and a strong regional response and joint action,” said Governor Radović and added that the CBCG had set as its priority to build a sustainable and resilient financial system that could respond to contemporary challenges and support the economy in achieving higher growth rates.

The Governor pointed out that the CBCG has been working intensively on harmonising the regulatory framework with relevant EU directives and strengthening institutional and staffing capacities, payment system modernisation and joining Montenegro to the Single Euro Payment Area (SEPA) as soon as possible. At the same time, recognising the risks brought by climate change, the CBCG works to create policies promoting the implementation of ESG standards and the financial sector’s greening and is also firmly committed to promoting gender equality and women’s economic empowerment.

In the panel, governors and vice-governors from seven countries in the region discussed, inter alia, the impact of FED and ECB measures on the monetary policies of the countries of the region, inflation and interest rates expectations, the banking and financial system’s stability and innovations in the financial sector.

The panellists agreed that implementing monetary policy in the region’s countries is highly demanding due to the numerous risks present, and individual countries cannot adequately respond to complex economic challenges and risks on their own. Therefore, the panel concluded that cooperation and coordination between the region’s countries were essential for achieving common goals and ensuring a more prosperous economic environment for all citizens. Moreover, senior officials of the region’s central banks said fiscal and monetary policy measures must be carefully designed and mutually synchronised to ensure effective risk management, preserve financial stability, and provide preconditions for sustainable economic growth.

Gathering many participants, and with its length and continuity, the Summit in Bečići confirmed its reputation as one of the most important regional economic events.

Welcome speech of CBCG Governor, Ms Irena Radović

Panel of central bank governors, Bečići