Regulatory Alerts2021-01-01
Decision on Minimum Standards for Risk Management in Financial Services Providers
The Council of the Central Bank of Montenegro issued this decision to establish mandatory minimum risk management standards for licensed financial services providers, including leasing, factoring, micro-lending, and credit-guarantee entities. The regulation requires institutions to implement comprehensive risk management systems that identify, measure, monitor, and control credit, liquidity, market, operational, and concentration risks through defined strategies, policies, and internal procedures. It further mandates strict operational controls such as monthly asset classification, adequate capital-to-borrowed funds ratios, liquidity maturity matching, foreign exchange position limits, operational loss reporting within eight days, and secure data backups, with full compliance required within six months of implementation.