Regulatory Alerts2026-01-01
Decision on the Manner of Calculating Specific Countercyclical Capital Buffer Rate of a Credit Institution
The Council of the Central Bank of Montenegro has issued a decision mandating that credit institutions calculate their specific countercyclical capital buffer rate as a weighted average of applicable national buffer rates based on the geographical distribution of their relevant credit exposures. The regulation establishes precise methodologies for weighting these rates using capital requirements for credit risk and defines strict rules for geolocating general credit, trading book, and securitisation exposures, including fallback provisions for unidentified obligors. Credit institutions must apply these calculation and location rules annually or upon material financial changes, with the decision taking effect the day after its publication in the Official Gazette of Montenegro.