Regulatory Alerts2021-01-01
Decision on Minimum Standards for Risk Management in Credit Guarantee Fund of Montenegro
The Council of the Central Bank of Montenegro issued this Decision to establish minimum risk management standards for the Credit Guarantee Fund of Montenegro, mandating the identification, measurement, monitoring, and control of credit, liquidity, market, and operational risks. The Fund must implement a dedicated risk management system with clear organizational separation, independent investment risk assessments, defined exposure limits, and quarterly sensitivity analyses, while maintaining complete documentation for all guarantees and liquidity projections. Additionally, the Decision requires the Fund to report risk exposures and liquidity shortfalls to the Central Bank according to specified timelines and mandates a biennial review of its risk management procedures, with the rules taking effect eight days after publication in the Official Gazette.