Decision on Financial Services Providers' Reporting to the Central Bank of Montenegro

1 Pursuant to Article 44 paragraph 2 item 3 of the Central Bank of Montenegro Law (OGM 40/10, 06/13, 7/17) and in conjunction with Article 115 paragraph 2 of the Law on Financial Leasing, Factoring, Purchase of Receivables, Micro-Lending and Credit-Guarantee Operations (OGM 73/17), the Council of the Central Bank of Montenegro, at its meeting held on 13 April 2018, passed the following DECISION on Financial Services Providers' Reporting to the Central Bank of Montenegro I. BASIC PROVISION Subject Matter Article 1 This decision shall regulate types, format, content and deadlines for the submission of the reports and other data on the financial condition and operations that the companies engaged in financial leasing, factoring purchase of receivables, micro-lending and credit-guarantee operations (hereinafter: financial services providers) shall submit to the Central Bank of Montenegro (hereinafter: the Central Bank). This decision shall be applied to the following financial services providers: micro-credit financial institutions, leasing companies, factoring companies, companies for the purchase of receivables, and credit-guarantee funds, whereas other financial services providers shall submit reports on the financial condition and operations in accordance with the separate laws. II. TYPES OF REPORTS AND REPORTING PERIODS Monthly Reports of Micro-Credit Financial Institution Article 2 A micro-credit financial institution shall submit to the Central Bank the following monthly reports:

1. Report on the Balance and Turnover of Funds at the Accounts (Form DATA);
2. Supporting Table for the Balance Sheet and Profit and Loss Statement Positions (Form DATA HELP);
3. Balance Sheet (Form M-BS);
4. Balance Sheet (Form M-BS1);
5. Profit and Loss Statement (Form M-BU);
6. Report on Other Comprehensive Income (Form M-UOR);
7. Report on Off-Balance Sheet Records (Form M-BS_VB);

2 8) Report on Cash and Deposit Accounts with Central Banks (Form M-ND); 9) Report on Cash and Deposit Accounts with Banks and Other Depository Institutions (Form M-ND1); 10) Report on Loans and Receivables from Banks and Other Clients (Form M-KL1); 11) Report on Structure of Loans and Other Receivables by Purpose (Form M-SKN); 12) Report on Loans and Other Receivables from Natural Persons (Form M-KFL); 13) Report on Non-Financial Sector Loans and Other Receivables by Industries (Form M￾KD); 14) Report on Past Due Loans and Receivables from Banks and Other Clients (Form M￾BSK1); 15) Report on Asset Classification (Form M-KA1); 16) Report on Off-Balance Sheet Asset Classification (Form M-KA2); 17) Report on Classification of Assets and List of Non-Performing Balance Sheet (Form M￾KNA_B); 18) Report on Classification of Off-Balance Sheet and List of Non-Performing Balance Sheet Assets (Form M-KNA_VB); 19) Report on Borrowings (Form M-IP); 20) Report on Borrowings Taken (Form M-P) 21) Report on Assets and Liabilities Maturity Match (Form M-RU). The micro-credit financial institution shall submit to the Central Bank the reports under paragraph 1 above no later than eight days following the expiry of the reporting monthly period. Quarterly Reports of Micro-Credit Financial Institution Article 3 A micro-credit financial institution shall submit to the Central Bank the following quarterly reports:

1. Report on the Balance and Turnover of Funds at the Accounts (Form DATA);
2. Supporting Table (Form DATA HELP);
3. Balance Sheet (Form BS);
4. Balance Sheet (Form BS1);
5. Profit and Loss Statement (Form BU);
6. Report on Other Comprehensive Income (Form UOR);
7. Report on Off-Balance Sheet Records (Form BS_VB);
8. Report on Cash and Deposit Accounts with Central Banks (Form ND);
9. Report on Cash and Deposit Accounts with Banks and Other Depository Institutions (Form ND1);
10. Report on Loans and Receivables from Banks and Other Clients (Form KL1);
11. Report on Structure of Loans and Other Receivables by Purpose (Form SKN);
12. Report on Loans and Other Receivables from Natural Persons (Form KFL);
13. Report on Non-Financial Sector Loans and Other Receivables by Industries (Form KD);
14. Report on Past Due Loans and Receivables from Banks and Other Clients (Form BSK1);
15. Report on Asset Classification (Form KA1);

3 16) Report on Off-Balance Sheet Asset Classification (Form KA2); 17) Report on Classification of Assets and List of Non-Performing Balance Sheet (Form KNA_B); 18) Report on Classification of Off-Balance Sheet and List of Non-Performing Balance Sheet Assets (Form KNA_VB); 19) Report on Borrowings (Form IP); 20) Report on Borrowings Taken (Form P) 21) Report on Assets and Liabilities Maturity Match (Form RU); 22) Extension of Repayment Period for Principal or Interest (Form PRK_I); 23) Replacement of the Existing Loan(s) by New Loan (Form PRK_II); 24) Other Similar Arrangements Facilitating the Debtor’s Financial Position (Form PRK_III); 25) Statistical Data (Form BS-ST); 26) Report on Interest Rate Risk (Form RKS); 27) Other Assets (Form BS-OA); 28) Other Liabilities (Form BS-OO); 29) Report on Non-Performing Loans by Holders (Form NKN); 30) Report on Non-Performing Loans by Industries (Form NKD); 31) Report on Past Due Loans and Receivables from Banks and Other Clients by Industries (Form BSK2); 32) List of Owners Holding over 10% of Share (Form VL); 33) Report on Operational Risk (Form OR); The micro-credit financial institution shall submit to the Central Bank the reports specified in paragraph 1 above no later than 20 days following the expiry of the reporting quarter. Notwithstanding paragraph 2 above, the micro-credit financial institution shall submit to the Central Bank the reports specified in paragraph 1 above for the last quarter of the business year based on the final information and data no later than 15 February of the following year. Reports of Leasing Company Article 4 A leasing company shall submit to the Central Bank the following quarterly reports:

1. Balance Sheet (Form BS-LD);
2. Balance Sheet, for statistical reporting (Form BSS-LD);
3. Profit and Loss Statement (Form BU-LD);
4. Structure of Receivables by Subject of Leasing and by Holders (Form SPN-LD);
5. Structure of Receivables by Industries (Form SD-LD);
6. Report on Classification of Receivables by Subject of Leasing (Form KL-LD);
7. Overview of 15 Largest Lessees (Form NK-LD);
8. Report on Borrowings Taken (Form P-LD);
9. List of Owners Holding over 10% of Shares (Form VL-LD);
10. Statistical Data (Form BS-ST);

4 11) Report on Assets Assumed (Form PI-LD); 12) Report on Deposits by Sectors, Currency and Maturity Structure (Form D-LD); 13) Report on Receivables based on Finance Lease and Loans by Sectors, Currency and Maturity Structure (Form FL-LD); 14) Report on Debt Securities by Sectors, Currency and Maturity Structure (Form HoV_AD￾LD); 15) Report on Equity Securities by Sectors and Currency Structure (Form HoV_V-LD); 16) Report on Other Receivables by Sectors and Currency Structure (Form OP-LD); 17) Report on Loans Received by Sectors, Currency and Maturity Structure (Form PS-LD); 18) Report on Issued Debt Securities by Sectors, Currency and Maturity Structure (Form HoV_PD-LD); 19) Report on Other Liabilities by Sectors and Currency Structure (Form OO-LD). The leasing companies shall submit to the Central Bank the reports specified in paragraph 1 above no later than 20 days following the expiry of the reporting quarter. Notwithstanding paragraph 2 above, the leasing companies shall submit to the Central Bank the reports specified in paragraph 1 above for the last quarter of the business year based on the final information and data no later than 15 February of the following year. Reports of Factoring Company Article 5 A factoring company shall submit to the Central Bank the following quarterly reports:

1. Balance Sheet (Form BS-FD);
2. Balance Sheet, for statistical reporting (Form BSS-FD);
3. Profit and Loss Statement (Form BU-FD);
4. Structure of Receivables - Factoring (Form SP-FD);
5. Report on Portfolio Classification of Factoring Operations (Form KL-FD);
6. Report on Borrowings Taken (Form P-FD)
7. List of Owners Holding over 10% of Shares (Form VL-FD);
8. Statistical Data (Form BS-ST);
9. Report on Deposits by Sectors, Currency and Maturity Structure (Form D-FD);
10. Report on Receivables based on Factoring by Sectors and Currency Structure (Form FL-FD);
11. Report on Debt Securities by Sectors, Currency and Maturity Structure (Form HoV_AD￾FD);
12. Report on Equity Securities by Sectors and Currency Structure (Form HoV_V-FD);
13. Report on Other Receivables by Sectors and Currency Structure (Form OP-FD);
14. Report on Loans Received by Sectors, Currency and Maturity Structure (Form PS-FD);
15. Report on Issued Debt Securities by Sectors, Currency and Maturity Structure (Form HoV_PD-FD);

5 16) Report on Other Liabilities by Sectors and Currency Structure (Form OO-FD). The factoring companies shall submit to the Central Bank the reports specified in paragraph 1 above no later than 20 days following the expiry of the reporting quarter. Notwithstanding paragraph 2 above, the factoring companies shall submit to the Central Bank the reports specified in paragraph 1 above for the last quarter of the business year based on the final information and data no later than 15 February of the following year. Reports of Companies for Purchase of Receivables Article 6 A companies for purchase of receivables shall submit to the Central Bank the following quarterly reports:

1. Balance Sheet (Form BS-OP);
2. Balance Sheet, for statistical reporting (Form BSS-OP);
3. Profit and Loss Statement (Form BU-OP);
4. Structure of Receivables by Holders and Contractual Maturity (Form SPN-OP);
5. Structure of Receivables by Industries (Form SD-OP);
6. Report on Classification of Receivables (Form KL-OP);
7. Report on Loans Restructured (Form PRK-OP);
8. Collection of Receivables (Form NP-OP);
9. Overview of 15 Largest Debtors (Form ND-OP);
10. Report on Borrowings Taken (Form P-OP);
11. List of Owners Holding over 10% of Shares (Form VL- OP);
12. Statistical Data (Form BS-ST);
13. Report on Deposits by Sectors, Currency and Maturity Structure (Form D- OP);
14. Report on Receivables based on Purchase of Receivables by Sectors, Currency and Maturity Structure (Form FL-OP);
15. Report on Debt Securities by Sectors, Currency and Maturity Structure (Form HoV_AD￾OP);
16. Report on Equity Securities by Sectors and Currency Structure (Form HoV_V-OP);
17. Report on Other Receivables by Sectors and Currency Structure (Form OP-OP);
18. Report on Loans Received by Sectors, Currency and Maturity Structure (Form PS-OP);
19. Report on Issued Debt Securities by Sectors, Currency and Maturity Structure (Form HoV_PD-OP);
20. Report on Other Liabilities by Sectors and Currency Structure (Form OO-OP). The companies for purchase of receivables shall submit to the Central Bank the reports specified in paragraph 1 above no later than 20 days following the expiry of the reporting quarter. Notwithstanding paragraph 2 above, the companies for purchase of receivables shall submit to the Central Bank the reports specified in paragraph 1 above for the last quarter of the business year based on the final information and data no later than 15 February of the following year.

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7 Reports of Credit-Guarantee Fund Article 7 A credit-guarantee fund shall submit to the Central Bank the following quarterly reports:

1. Balance Sheet (Form BS-KGF);
2. Profit and Loss Statement (Form BU-KGF);
3. Guarantees Issued (Form IG-KGF);
4. Overview of 15 Largest Guarantees Issued (Form NG-KGF);
5. Structure of Receivables when a Guarantee is Paid by the Fund (Form SP-KGF);
6. Classification of Receivables when a Guarantee is Paid by the Fund (Form KP-KGF);
7. Overview of 15 Largest Debtors (Form ND-KGF);
8. Investment of Idle Funds (Form PS-KGF);
9. Report on Borrowings Taken (Form P-KGF);
10. List of Owners Holding over 10% of Shares (Form VL-KGF);
11. Statistical Data (Form BS-ST). The credit-guarantee fund shall submit to the Central Bank the reports specified in paragraph 1 above no later than 20 days following the expiry of the reporting quarter. Notwithstanding paragraph 2 above, the credit-guarantee fund shall submit to the Central Bank the reports specified in paragraph 1 above for the last quarter of the business year based on the final information and data no later than 15 February of the following year. Additional Reporting Article 8 Financial services providers shall submit in writing to the Central Bank, together with quarterly reports for the first quarter of the business year, information on the amount of salaries, remunerations, additional payments and other benefits paid in the previous year to the board of directors and executive director (gross and net amounts by categories of income). III. REPORTING FORMAT Article 9 Financial services providers shall submit the reports set forth herein using the forms, which are enclosed to this decision and make an integral part thereof. The Central Bank may offer guidance and clarification as necessary for filling out the positions in the reporting forms referred to herein.

8 Article 10 Financial services providers shall submit reports referred to herein in electronic form specified by the Central Bank. Upon the Central Bank request, financial services providers shall submit reports under this Decision also in hard copy. IV. TRANSITIONAL AND CLOSING PROVISIONS Article 11 A company, which performs the operations of financial leasing, factoring or purchase of receivable as of the day of the application of this decision, and is licensed by the Central Bank, shall submit to the Central Bank the first reports under this Decision for the quarter following the quarter in which it has been licensed. Article 12 As of the day of the beginning of the implementation of this Decision, sub-chapter “Micro-Credit Financial Institutions Reports” and Articles 8 and 9 of the Decision on Reporting to the Central Bank (OGM 64/12,83/17), and forms specified under these Articles and enclosed to the decision shall be repealed. Article 13 This decision shall enter into force on the eighth day following that of its publication in the Official Gazette of Montenegro, and it shall apply from 11 May 2018. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO CHAIRMAN Decision number 0101-3393-9/2018 G O V E R N O R, Podgorica, 13 April 2018 Radoje Žugić, m.p.