Regulatory Alerts2024-01-01
Decision on Applying the Structural Systemic Risk Buffer
The Council of the Central Bank of Montenegro issued this decision to establish a 1.5% structural systemic risk buffer rate for all credit institutions. This buffer applies to the total exposure of institutions in Montenegro and other countries, requiring maintenance in accordance with the Law on Credit Institutions. The regulation entered into force upon publication in the Official Gazette and became applicable as of 1 January 2022.
Pursuant to Article 44 paragraph 2 point 3 of the Central Bank of Montenegro Law (OGM 40/10, 06/13 and 70/17), Article 150 paragraph 1, and Article 151 paragraph 1 of the Law on Credit Institutions (OGM 72/19 and 8/21), at its meeting held on 30 November 2021, the Council of the Central Bank of Montenegro passed the following DECISION ON APPLYING THE STRUCTURAL SYSTEMIC RISK BUFFER Subject Matter Article 1 This decision shall regulate the rate and method of maintaining the structural systemic risk buffer. Structural systemic risk buffer rate Article 2 The rate of structural systemic risk buffer for all credit institutions shall amount to 1.5% of total exposure of a credit institution in Montenegro and in another country where the credit institution has exposures. Method of maintaining the buffer Article 3 Credit institutions shall maintain the structural systemic risk buffer at the rate specified in Article 2 herein, in accordance with Article 152 of the Law on Credit Institutions (OGM 72/19 and 8/21). Reporting to the Central Bank of Montenegro Article 4 Credit institutions shall report to the Central Bank of Montenegro on meeting the requirements specified herein in the manner and within the deadlines specified under the Decision on Reporting to the Central Bank of Montenegro (OGM 128/20).
Entry into Force Article 5 This decision shall enter into force on the day of its publication in the Official Gazette of Montenegro and it shall apply as of 1 January 2022. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO Decision number: 0101- 8201-2/2021 CHAIRMAN Podgorica, 30 November 2021 G O V E R N O R, Radoje Žugić, m.p.