At a recent meeting of the Financial Stability Council, an intersectoral working group was established to develop a roadmap for advancing sustainable finance within the financial sector.
The meeting addressed the potential impacts of climate change on the financial system, noting that climate-related risks influence macroeconomic indicators such as inflation, economic growth and financial stability.
“The Council concluded that this situation highlights the need for a proactive approach, including the creation of a roadmap for the financial sector’s transition to sustainable finance. Consequently, an intersectoral working group has been formed, consisting of representatives from the Central Bank (CBCG), other financial market regulators, the Ministries of Finance and Economic Development, and other key stakeholders who will actively contribute to this effort,” according to the CBCG statement.
The roadmap aims to direct financial flows toward sustainable projects and support a quicker and more efficient transition to a greener, more sustainable, and resilient economy.
The meeting was chaired by CBCG Governor and Council Chair Irena Radović. Other attendees included Finance Minister Novica Vuković, Capital Market Commission President Željko Drinčić, and Insurance Agency Council President Marko Ivanović. Vojin Vlahović, Director of the Deposit Protection Fund, also attended at Radović’s invitation.
The Council commended the coordination between the CBCG, other regulators, the government, and Parliament, which led to Montenegro’s official application for membership in the Single Euro Payments Area (SEPA) being submitted on July 1, 2024.
“It is anticipated that the European Payments Council will positively assess the application in the coming months, and the importance of continuing preparations for the banking system’s integration into SEPA payment networks was highlighted,” the statement said.
Council members also discussed obligations related to Negotiation Chapters 4 (Capital Movement) and 9 (Financial Services), emphasizing the need for further alignment of regulations with EU standards.
In line with the commitment of key stakeholders, the Council supported efforts to meet these requirements more intensively.
The meeting also considered the potential issuance of government bonds on the domestic market, viewing this initiative positively, particularly for its role in developing the domestic capital market and encouraging public savings.
Overall, the Council agreed that financial stability was maintained in the first half of the year, with current risks being moderate.
