Regulatory Alerts2025-01-01
Decision on the Calculation and Reporting of the Effective Interest Rate on Loans and Deposits
The Council of the Central Bank of Montenegro mandates a standardized methodology for calculating, reporting, and disclosing the effective interest rate on all consumer and commercial loans and deposits. Financial institutions must compute rates using compound interest, decursive calculations, and calendar-day discounting, while providing customers with detailed repayment or payoff plans prior to contract signing. Additionally, credit institutions are required to regularly submit consumer loan offer data to the Central Bank for public publication, replacing previous regulatory frameworks.
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