Regulatory Alerts2026-01-01
Decision on the Detailed Manner of Valuation of Assets and Liabilities Before Resolution Action or Capital Instrument Write-Down or Conversion
The Council of the Central Bank of Montenegro issued a decision detailing the mandatory valuation methodology for credit institution assets and liabilities prior to resolution actions or capital instrument write-downs and conversions. The regulation establishes precise definitions, valuation dates, and information sourcing requirements for independent valuers, while mandating comprehensive reports that disclose key assumptions, best point estimates, and value ranges. It further specifies distinct measurement bases such as hold and disposal values, outlines criteria for discount rates and handling valuation uncertainties, and requires explicit assessment of intra-group support and derivative liabilities to ensure accurate loss recognition and equitable creditor treatment.