Regulatory Alerts2021-01-01
Decision on Large Exposures of the Development Bank of Montenegro
The Council of the Central Bank of Montenegro issued this Decision to establish the calculation methods, identification criteria, and management limits for large exposures of the Development Bank of Montenegro. The regulation defines connected persons based on control or economic dependency, sets exposure limits at 10% of Tier 1 capital for identification and up to 50% or 75% of own funds for specific exposures, and permits credit risk mitigation techniques to reduce calculated exposure values. The Development Bank is required to implement sound administrative procedures, conduct periodic stress tests, and report any breaches of these limits to the Central Bank of Montenegro without delay.
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