Regulatory Alerts2026-01-01
Decision on Methodologies and Criteria for Determining the Amount of Liabilities Arising from Derivatives
The Council of the Central Bank of Montenegro issued this Decision to establish methodologies for valuing derivative liabilities and determining close-out amounts during the resolution of credit institutions. It mandates an independent appraiser to calculate early termination values based on replacement trades or market data, while specifying distinct valuation procedures for centrally cleared contracts. The framework further defines notification requirements, netting agreement treatments, and the precise timing for establishing derivative liability values to ensure orderly resolution processes.
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