The Central Bank of Montenegro (CBCG) has begun implementing the recommendations from the Needs Assessment project, thus opening a new phase of the institutional transformation of the supreme monetary institution and preparing for the obligations brought by Montenegro’s future membership in the European Union.
“To this end, a Coordination Body for Monitoring the Implementation of Recommendations was established, which held its first meeting and began work on determining priorities, dynamics, responsibilities and necessary resources,” the CBM statement said.
As specified, the goal of this process is for the Central Bank of Montenegro to timely reach the necessary level of institutional, professional, technological and operational readiness for membership in the European System of Central Banks (ESCB), and in the next phase for integration into the Eurosystem.
“The Needs Assessment project, conducted from June last year to September, represented a comprehensive assessment of the Central Bank’s readiness and future needs. It was implemented in cooperation with the Dutch Central Bank /De Nederlandsche Bank/ (DNB) and the National Bank of Belgium /Nationale Bank van België/Banque nationale de Belgique (NBB), with the support of the German Central Bank /Deutsche Bundesbank/ and other Eurosystem partners, while the second phase of the project was implemented with the financial support of the European Commission,” the CBCG said.
During 13 expert missions, more than 60 European experts have analyzed the organization, processes and capacities of the Central Bank of Montenegro in detail. The result is concrete recommendations for further institutional, human resources, technological and operational improvements, contained in 18 expert reports.
“Upon completion of the assessment, the CBCG moves from the analysis phase to the implementation phase. The coordination body will ensure that the recommendations are implemented systematically at the institution-wide level, with clearly defined priorities and deadlines and resources directed to areas of greatest importance for future work within the European central banking framework,” the CBCG said.
The recommendations cover almost all key functions of the Central Bank – monetary and macroprudential policy, statistics, banking supervision and bank resolution, payment systems, as well as human resources, information technology and data management, cybersecurity and digitalization.
The Governor of the Central Bank of Montenegro, Irena Radović, said that what lies ahead is not just the implementation of a set of recommendations, but the continuation of the in-depth transformation of the Central Bank.
“The project led by our colleagues from the central banks of the Netherlands, Belgium and Germany has given us a clear map of what we need to further improve. Our goal is to be ready not only for the day of Montenegro’s membership in the European Union, but also for the moment of signing the Accession Treaty, when a new phase of direct inclusion in the European central banking framework begins for the CBCG, including participation in its structures as an observer,” said Radović.
This, she said, requires strong institutional, human resources, IT and operational capacities, as well as the ability of her employees to become increasingly involved in the work of the bodies and committees of the European System of Central Banks over the next year.
“From the first day of membership, the Central Bank of Montenegro must be ready to, as an integral part of the ESCB, fulfill the obligations arising from membership equally, efficiently and without an adjustment period. That is why we are implementing changes in a planned manner, responsibly and early enough, with a clear goal – for the Central Bank of Montenegro to enter the European central banking system as a modern, strong, resilient and fully operationally ready institution,” said Radović.
The Central Bank is also publishing the final Needs Assessment report today, so that its findings and recommendations are available to the professional and general public.
The report confirms that the CBCG has a strong institutional foundation and a high level of commitment to European integration, but at the same time clearly identifies areas where further capacity strengthening is needed in order for the institution to respond to the greater scope and complexity of tasks that await it within the ESCB.
“Special attention in the coming period will be focused on the development of professional and human resources capacities, information and payment systems, data management, cyber resilience, statistics, supervision and other functions directly related to the future work of the CBCG in the European central banking system,” the statement said.
The implementation of the recommendations from the Needs Assessment project will, as it was concluded, be one of the key priorities of the Central Bank of Montenegro in the coming period and an important part of the institution’s preparations for the next phases of Montenegro’s European integration.
Download the app and follow the news
FOLLOW US ON
News