Regulatory Alerts2026-01-01
Decision on Criteria for Assessing Negative Effects of Resolution Plans on Financial Markets and Funding Conditions
The Council of the Central Bank of Montenegro issued this Decision to establish quantitative and qualitative criteria for assessing whether the failure of a credit institution would significantly impact financial markets, other institutions, or funding conditions. The Central Bank is required to conduct these assessments at least every two years, utilizing a quantitative score threshold of 25 basis points and specific qualitative indicators such as critical functions and deposit protection fund exposure. The regulation also defines assessment levels for group entities and promotional credit institutions, with certain provisions deferred until Montenegro's accession to the European Union.
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