Regulatory Alerts2026-01-01
Decision amending the Decision on the Criteria and the 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 amend the regulatory framework governing the classification of assets and the calculation of provisions for potential loan losses by credit institutions. The primary change introduces detailed requirements for assessing debtor creditworthiness, specifically mandating the use of specific financial indicators such as loan-to-income and debt-service-to-income ratios for natural persons. Additionally, the decision makes minor textual corrections to other articles and establishes transitional provisions regarding capital adequacy rules until specific legal articles are fully applied.
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