Regulatory Alerts2026-01-01
Decision on the Method of Calculating Capital Adequacy at the Level of the Financial Conglomerate
The Council of the Central Bank of Montenegro issued this Decision to prescribe the methods for calculating capital adequacy at the financial conglomerate level, primarily focusing on the banking sector. It establishes rules for eliminating multiple recognition of own funds, ensuring transferability, and defining specific capital items eligible for covering deficits across regulated and non-regulated entities. The regulation details three calculation approaches—accounting consolidation, deduction and aggregation, and a combined method—while mandating consistent implementation and Central Bank oversight to ensure solvency requirements are met.
Share