Regulatory Alerts2024-01-01
Decision on Raising the Countercyclical Capital Buffer Rate
The Council of the Central Bank of Montenegro issued a decision raising the countercyclical capital buffer rate for the territory of Montenegro by 0.50 percentage points to 0.5% of total risk exposure. This regulatory change applies to credit institutions starting from 1 April 2025, requiring them to report their calculated buffers in accordance with existing reporting deadlines. The decision entered into force upon its publication in the Official Gazette of Montenegro on 25 March 2024.
Pursuant to Article 44 paragraph 2 point 3 of the Central Bank of Montenegro Law (OGM 40/10, 06/13 and 70/17) and Article 141 of the Law on Credit Institutions (OGM 72/19 and 8/21), at its meeting held on 25 March 2024, the Council of the Central Bank of Montenegro passed the following DECISION ON RAISING THE COUNTERCYCLICAL CAPITAL BUFFER RATE Countercyclical Capital Buffer Rate Article 1 The Countercyclical capital buffer rate for the territory of Montenegro is hereby raised by 0.50 percentage points and it shall amount to 0.5% of the total risk exposure. Date of Application Article 2 The countercyclical capital buffer rate specified under Article 1 herein shall apply as of 1 April 2025. Reporting to the Central Bank of Montenegro Article 3 Credit institutions shall report to the Central Bank of Montenegro on their countercyclical capital buffers calculated by applying the rate specified in Article 1 herein in the manner and within the deadlines specified under the Decision on Reporting to the Central Bank of Montenegro (OGM 128/20). Entry into Force Article 4 This decision shall enter into force on the day of its publication in the Official Gazette of Montenegro and it shall apply as of 1 April 2025. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO Dec. no. 0101-2538-4/2024 CHAIRMAN Podgorica, 25 March 2024 GOVERNOR, Irena Radović m.p.