Regulatory Alerts2026-01-01
Decision amending the Decision on Recovery Plans of Credit Institutions
The Council of the Central Bank of Montenegro issued this decision to amend the regulatory framework for credit institution recovery plans. The amendments primarily replace specific terminology with 'core' and update definitions regarding core business lines and critical functions across multiple articles. Additionally, the decision replaces Annex 2 with new templates for recovery options and stress testing scenarios.
1 Pursuant to Article 44 paragraph 2 item 3) of the Central Bank of Montenegro Law (OGM 40/10, 6/13, 70/17) and Article 125 paragraph (9) of the Law on Credit Institutions (OGM, 72/19, 8/21), the Council of the Central Bank of Montenegro, at its meeting held on 17 February 2022, passed the following DECISION AMENDING THE DECISION ON RECOVERY PLANS OF CREDIT INSTITUTIONS Article 1 In the Decision on recovery plans of credit institutions (OGM 127/20), in Article 12 paragraph (2) item 2) the words “key” shall be replaced by the following: “core”. Article 2 In Article 15 paragraphs (1) and (2), after the word: “function and”, the following “core” shall be added. Paragraph (3) shall be deleted. Current paragraph (4) shall become paragraph (3). Article 3 In Article 16 paragraphs (1) item 1) indent 3, the Montenegrin words translated as “core business lines” shall be replaced by other Montenegrin words, with no relevance to the English translation. Indent 4 shall be amended, worded as follows: “ - a description of the criteria for determining core business lines and critical functions; In item 2), the Montenegrin words translated as “core business lines” shall be replaced by other Montenegrin words, with no relevance to the English translation. Article 4 In Article 18 paragraphs (2) item 1, the Montenegrin words translated as “core business lines” shall be replaced by other Montenegrin words, with no relevance to the English translation. Article 5 Annex 2 shall be replaced by a new Annex 2 attached to this Decision and makes integral part thereof.
2 Article 6 This Decision shall enter into force on the eight day following that of its publication in the Official Gazette of Montenegro. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO CHAIRMAN G O V E R N O R, Decision number: 0101-1233-4/2022 Podgorica, 17 February 2022 Radoje Žugić, m.p.
3 ANNEX 2 TEMPLATE 1: RECOVERY OPTIONS Option name Areas of measures Is it applied in early intervention phase Capital Liquidity Financial leverage Risk management Restructuring of liabilities Other
4 TEMPLATE 2: SCENARIOS Scenario name Type of scenario Fast- /slowdevelopin g events Stresses and their parameter s Application of reverse stress testing Level of indicators after stress testing Measures that are applicable in the scenario Level of indicators after the implementa tion of measures Specific Systemic Combined