Regulatory Alerts2026-01-01
Decision on More Detailed Criteria for Identifying Arrangements and Agreements and Counterparties Arising from Partial Transfer of the Assets, Rights or Liabilities of the Credit Institution under Resolution
The Council of the Central Bank of Montenegro issued this Decision to prescribe detailed criteria for identifying arrangements, agreements, and counterparties arising from the partial transfer of assets, rights, or liabilities of a credit institution under resolution. The regulation defines key terms such as netting, securitisation, and security arrangements, while specifying conditions under which set-off, netting, and structured finance arrangements qualify for resolution purposes. It further grants the Central Bank discretionary authority to classify specific agreements as part of structured finance arrangements on a case-by-case basis to ensure appropriate risk mitigation and legal clarity during resolution proceedings.
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