Regulatory Alerts2026-01-01
Decision on the Method of Calculating Maximum Distributable Amount of Credit Institutions
The Council of the Central Bank of Montenegro establishes the calculation methodology for the Maximum Distributable Amount (MDA) applicable to credit institutions that fail to meet combined capital buffer or leverage ratio buffer requirements. Institutions must compute the MDA by applying a quartile-dependent factor ranging from zero to 0.6 to their adjusted interim and year-end profits, while strictly reducing the calculated amount by specified tax liabilities and prior distribution obligations. The regulation mandates prior notification to the Central Bank detailing capital levels, profit amounts, and intended distributions before any dividends, share buybacks, or variable remuneration payments can be executed.
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