Regulatory Alerts2021-01-01
Decision on Criteria and Manner of Classification of Assets and Calculation of Provisions for Potential Loan Losses of the Development Bank of Montenegro
The Council of the Central Bank of Montenegro issued this Decision to establish the criteria and methodology for the Development Bank of Montenegro to classify assets and calculate provisions for potential loan losses in compliance with IFRS 9. The regulation mandates quarterly asset quality assessments, detailed impairment calculations for individually significant receivables, and collective assessments for the broader loan portfolio based on shared credit risk characteristics. It further specifies rigorous valuation and monitoring requirements for collateral, including immovable and movable property, to ensure accurate determination of impairment factors and realisation deadlines.
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