Regulatory Alerts2026-01-01
Decision amending the Decision on Minimum Standards for Investment of Credit Institutions in Immovable Property and Fixed Assets
The Council of the Central Bank of Montenegro amended regulations to cap credit institutions' investments in immovable property and fixed assets at 40% of their Common Equity Tier 1 capital. Investments exceeding this threshold must be treated as deductible items when calculating capital adequacy, with a transitional period allowing a 70% limit until June 30, 2027. The decision entered into force eight days after publication and applies retroactively from June 30, 2026.
Pursuant to Article 44 paragraph (2) item 3) of the Central Bank of Montenegro Law (OGM 40/10, 6/13, 7/17, 125/23) and Article 176 paragraph (2) of the Law on Credit Institutions (OGM 72/19, 8/21, 24/25), the Council of the Central Bank of Montenegro, at its meeting held on 26 January 2026, passed the following DECISION amending the Decision on Minimum Standards for Investment of Credit Institutions in Immovable Property and Fixed Assets Article 1 In the Decision on minimum standards for investment of credit institutions in immovable property and fixed assets (OGM 126/20, 20/24) Article 3 shall be amended to read: “Limitation of investments Article 3 The total investments of a credit institution in immovable property and fixed assets may not exceed 40% of the amount of the credit institution’s Common Equity Tier 1 capital, calculated in accordance with the regulation governing the capital adequacy of credit institutions. The amount of investments in immovable property and fixed assets that exceeds 40% of the Common Equity Tier 1 capital shall be treated by the credit institution as a deductible item when calculating Common Equity Tier 1 capital, in accordance with the regulation governing the capital adequacy of credit institutions.” Article 2 After Article 5 a new article shall be added, worded as follows: “Transitional period for limitation of investments Article 5a The level referred to in Article 3 of this Decision shall, until 30 June 2027, amount to 70% of Common Equity Tier 1 capital.” Article 3 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 as of 30 June 2026. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO CHAIRPERSON G O V E R N O R
Irena Radović, m.p. Decision number: 0101-646- 8/2026 Podgorica, 26 January 2026