Regulatory Alerts2026-01-01
Decision on Recovery Plans of Credit Institutions
The Council of the Central Bank of Montenegro mandates that credit institutions develop, submit, and maintain comprehensive recovery plans to restore financial stability during periods of severe distress. The regulation prescribes mandatory plan structures, including governance protocols, strategic analyses of critical functions, and predefined recovery options activated by specific capital, liquidity, profitability, and market indicators. Institutions must embed these metrics into their risk management frameworks, continuously monitor them for early warning signals, and immediately notify the regulator upon threshold breaches or decisions to implement or defer recovery actions.
Share