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 Development Bank of Montenegro issued this Decision to prescribe the criteria and methodology for classifying assets and calculating 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 credit risk characteristics. It further establishes specific valuation rules for immovable and movable collateral, including independent appraisal requirements and monitoring frequencies, to ensure accurate determination of probable losses.
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