Regulatory Alerts2026-01-01
Decision on Methodologies and Criteria for Determining the Amount of Liabilities Arising from Derivatives
The Council of the Central Bank of Montenegro establishes standardized methodologies and criteria for valuing derivative liabilities during credit institution resolution proceedings. It requires independent valuers to calculate early termination amounts using commercially reasonable replacement trades or market data, while mandating Central Bank notification before executing close-out actions. The framework delineates specific valuation rules for netted and centrally cleared derivatives to ensure accurate loss allocation and proper alignment with resolution strategies prior to bail-in implementation.
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