Regulatory Alerts2024-01-01
Decision Supplementing the Decision on Raising the Countercyclical Capital Buffer Rate
The Council of the Central Bank of Montenegro issued a decision on 24 December 2024 to increase the countercyclical capital buffer rate by 0.50 percentage points to 1% of total risk exposure. This regulatory change applies to credit institutions and becomes effective on 1 January 2026. The decision enters into force upon its publication in the Official Gazette of Montenegro.
Pursuant to Article 44 paragraph 2 point 3 of the Central Bank of Montenegro Law (OGM 40/10, 06/13, 70/17, 125/33) and Article 141 of the Law on Credit Institutions (OGM 72/19 and 8/21), at its meeting held on 24 December 2024, the Council of the Central Bank of Montenegro passed the following DECISION SUPPLEMENTING THE DECISION ON RAISING THE COUNTERCYCLICAL CAPITAL BUFFER RATE Article 1 In the Decision on raising the countercyclical capital buffer rate (OGM 27/24), in Article 1, after paragraph 1, the following paragraph shall be added to read: “The countercyclical capital buffer rate under paragraph 1 shall be raised by 0.50 percentage points and it shall amount to 1% of the total risk exposure.” Article 2 In Article 2 paragraph 1, after the words “Article 1”, the words “paragraph 1” shall be added. A new paragraph shall be added after paragraph 1 to read: “The countercyclical capital buffer rate specified under Article 1 paragraph 2 herein shall apply as of 1 January 2026.” Article 3 This decision shall enter into force on the day of its publication in the Official Gazette of Montenegro. s THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO Dec. no. 0101- 10043-3/2024 CHAIRMAN Podgorica, 24 December 2024 GOVERNOR, Irena Radović, m.p.