Regulatory Alerts2024-01-01
Decision on Macroprudential Measures Related to Retail Loans Granted by Credit Institutions
The Council of the Central Bank of Montenegro issued this decision to impose macroprudential measures on retail cash loans to maintain financial system stability. Credit institutions are restricted from granting or extending retail cash loans with repayment periods exceeding eight years unless the loans are fully secured by specific collateral types such as mortgages, pledges, or acceptable credit insurance. Additional restrictions apply to institutions with high concentrations of long-term unsecured loans or elevated non-performing loan ratios, requiring monthly reporting to the regulator and subjecting non-compliance to legal sanctions.
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