CBCG: Recommendations from the Needs Assessment report will form the basis for the Roadmap for harmonization with European standards

The recommendations from the Needs Assessment report will form the basis for the Roadmap for harmonization of the Central Bank of Montenegro (CBCG) with European standards, which will translate the assessment findings into specific priorities, projects, necessary resources and the dynamics of their implementation, the CBCG announced.

They stated that, on the eve of the High-Level Conference marking the 25th anniversary of the CBCG's work, the final meeting of the Steering Board of the CBCG Needs Assessment project was held in Tivat, officially completing this comprehensive project and beginning a new phase of the CBCG's institutional transformation.

It is stated that on that occasion, the Governor of the Central Bank (CB) of Belgium, Pierre Wunsch, and the former Governor of the CB of the Netherlands, Klaas Knot, presented the final Needs Assessment report to the Governor of the CBCG, Irena Radović.

As it is added, the report contains a comprehensive and independent assessment of the institutional and operational readiness of the Central Bank of Montenegro and recommendations for further harmonization of its governance, operations, technological infrastructure and human resources with European central banking standards.

"The completion of the project represents an important milestone in the preparations of the Central Bank of Montenegro to assume obligations in future membership in the ESCB from the moment of Montenegro's accession to the European Union (EU) and, in the next phase, for participation in the Eurosystem," the statement said.

The project, as it is added, was implemented in cooperation with the Central Bank of Belgium (Nationale Bank van België/Banque Nationale de Belgique – NBB) and the Central Bank of the Netherlands (De Nederlandsche Bank – DNB), which were the main partner institutions of the Central Bank of Montenegro during the Needs Assessment process.

The project, as stated, used the expertise and long-standing support of the German Central Bank (Deutsche Bundesbank), through cooperation within the Western Balkans initiative funded by the European Commission.

It is added that the Central Bank of Slovakia (Národná banka Slovenska - NBS) provided additional expert support in selected areas, further strengthening the assessment with the experience and knowledge of the wider Eurosystem community.

The Central Bank of Montenegro said that the assessment process, conducted from September last year to June this year, included 13 expert missions to the Central Bank of Montenegro, the engagement of more than 50 experts from partner central banks and the wider European central banking network, as well as the presentation of 18 individual reports, the findings and recommendations of which were consolidated in the final Needs Assessment report.

It is stated that the assessment includes key and supporting functions of the Central Bank of Montenegro, with the aim of assessing their readiness for future efficient operations within the institutional framework of the ESCB and later, the Eurosystem.

"The final report confirms that the CBCG has a sound institutional basis and is on a credible path towards stronger integration into the European central banking community, while identifying areas where additional capacity building and investment will be needed to respond to the broader scope, complexity and operational requirements associated with future participation in the European central banking system," the statement said.

Special attention, it is added, is dedicated to further strengthening analytical and supervisory capacities, as well as capacities for the full implementation of monetary and macroprudential policy, information technology and data management, cybersecurity and operational resilience, digital transformation, and human resources.

"The recommendations from the report will form the basis for a Roadmap for alignment with the standards of the ESCB, the Eurosystem and the European framework for bank supervision and resolution, which will translate the assessment findings into specific priorities, projects, necessary resources and the dynamics of their implementation," the Central Bank of Montenegro said.

Radović thanked the partner institutions and experts who participated in the project, emphasizing that the submission of the final report does not represent the end of the process, but the beginning of the next, key phase - the implementation of recommendations.

"The Needs Assessment project has given us a clear and objective picture of where we are today, what our strengths are and what next steps we need to take. Our goal is not just formal alignment, but full operational readiness to, from the first day of Montenegro's EU membership, assume responsibilities within the European System of Central Banks and continue preparations for future participation in the Eurosystem," said Radović.

According to her, the next step is to translate the recommendations into concrete reforms, investments and institutional capacities.

"Therefore, the final report and Roadmap will guide the next phase of the CBCG's transformation into a modern, resilient and fully integrated member of the European Central Banking Community," added Radović.

Wunsch, as stated, praised the commitment, openness and professionalism of the Central Bank of Montenegro throughout the entire project, as well as the quality of cooperation between partner institutions.

He emphasized that the completion of the Needs Assessment project represents an important step towards closer integration of the CBCG into the European central banking community and confirmed the willingness of partner institutions to continue to provide support to the CBCG in the next phase of the process.

"The completion of the Needs Assessment project comes at a particularly significant moment for the Central Bank of Montenegro, which this year marks 25 years since its establishment, as well as for Montenegro, which is approaching the final phase of the EU accession process," the Central Bank of Montenegro said in a statement.

They stated that based on the findings of the report, the Central Bank of Montenegro is now decisively moving from the assessment phase to the implementation phase, with a clear goal.

"To ensure that the institution is fully institutionally, operationally and technologically ready for the responsibilities that will accompany Montenegro's membership in the EU and its integration into the ESCB, and subsequently into the Eurosystem," the statement concludes.