Regulatory Alerts2026-01-01
Decision on Criteria and Manner of Classification of Assets and Calculation of Provisions for Potential Loan Losses of a Credit Institution
The Council of the Central Bank of Montenegro issued this Decision to prescribe the criteria and methodology for classifying balance sheet and off-balance sheet items and calculating provisions for potential credit losses. It mandates that credit institutions value assets in accordance with IFRS 9, conduct impairment assessments individually for exposures exceeding EUR 300,000 and collectively for the remainder, and perform these valuations at least quarterly. The regulation further details specific requirements for treating collateral, including immovable and movable property, by establishing minimum impairment factors, realization deadlines, and independent appraisal obligations to ensure accurate loss provisioning.
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