Regulatory Alerts2026-01-01
Decision on Methods of Prudential Consolidation of Credit Institutions
The Council of the Central Bank of Montenegro issued this Decision to prescribe the methods for prudential consolidation of credit institutions and their subsidiaries. It mandates that parent institutions meet capital adequacy and liquidity risk management obligations on both an individual and consolidated basis, with specific derogations for resolution entities and significant subsidiaries. The regulation defines full, proportional, and equity consolidation methods based on ownership stakes and management links, while granting the Central Bank supervisory discretion to determine consolidation approaches for complex group structures.
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