Split hosts Regional Governors’ Meeting

Published: 15/3/2024
Split hosts Regional Governors’ Meeting
Josip Visković, Alfred Kammer, Boštjan Vasle, Irena Radović, Boris Vujčić, Anita Angelovska Bežoska and Željko Marić

Split hosted today the Regional Governors’ Meeting organised by the Croatian National Bank. In cooperation with the Faculty of Economics, Business and Tourism, University of Split, governors took part in a round table discussion on the following topic: “Banks and Consumers amid High albeit Falling Inflation and Increasing Interest Rates”.  

The panelists – Governor of the Croatian National Bank Boris Vujčić, Governor of the National Bank of the Republic of North Macedonia Anita Angelovska Bežoska, Vicegovernor of the Central Bank of Bosnia and Herzegovina Željko Marić, Governor of the Bank of Slovenia Boštjan Vasle, Governor of the Central Bank of Montenegro Irena Radović and Head of Department of Finance of the Faculty of Economics, Business and Tourism in Split Josip Visković – discussed the current topics and monetary policies of central banks in the region and the European Central Bank (ECB).

The governors discussed the current inflationary trends in their respective countries and the dynamics and manner of a pass-through of the key ECB interest rates to banks’ operations and to financing conditions of the economy and consumers as well as household and corporate deposits.

Governor of the Croatian National Bank Boris Vujčić said that, thanks to the timely measures taken by the Croatian National Bank, the Croatian banking system is highly capitalised and resilient to systemic risks and vulnerabilities. “So far the tightening of monetary policy in the euro area somewhat increased the costs of corporations, in particular for companies in which interest rates on new loans rose more sharply than in households. Households have been much less affected by the increase in interest rates primarily thanks to the CNB’s long-term policy, resulting in a high share of loans granted at a fixed interest rate, while the majority of those granted at a variable interest rate is linked to the national reference rate, which together with the statutory interest rate cap on variable interest rates still protects the citizens from a sudden and stronger growth in interest rates,” he said.

Dean of the Faculty of Economics, Business and Tourism in Split Vinko Muštra said that the Faculty puts special emphasis on the implementation of competitive research projects and internationally recognised study programmes and, as such, also represents the institution that actively participates in addressing the most important social issues. “Therefore, we would particularly like to thank the Croatian National Bank for the support and partnership in organising the Governors’ Meeting, the event during which the most significant monetary policy stakeholders in the region discussed the key challenges of today,” he added.

“The forecast is for a soft landing of the economies in the CESEE region with growth recovering as disinflation continues. But given still-higher inflation and wage growth levels, achieving inflation targets will take one year longer in the CESEE region compared to advanced European economies,” said Alfred Kammer, Director of European Department, International Monetary Fund who also gave the keynote speech "Executing a Soft Landing for a Lasting Recovery?"

Following the panel discussion, governors responded to numerous questions posed by students and entrepreneurs participating in the meeting.