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The Council of the Central Bank of Montenegro has issued a decision raising the countercyclical capital buffer rate to 0.5% of total risk exposure. This increased rate becomes applicable to credit institutions starting on 1 April 2025, with a further increase to 1% taking effect on 1 January 2026. Institutions are required to report their calculated buffers to the Central Bank in accordance with existing reporting deadlines.
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Unofficially consolidated translation
DECISION
ON RAISING THE COUNTERCYCLICAL CAPITAL BUFFER RATE (OGM 027/24 of 27.03.2024, 125/24 of 26.12.2024) Countercyclical Capital Buffer Rate
Article 1
The Countercyclical capital buffer rate for the territory of Montenegro is hereby raised by 0.50 percentage points and it shall amount to 0.5% of the total risk exposure. 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. Date of Application
Article 2
The countercyclical capital buffer rate specified under Article 1 herein shall apply as of 1 April 2025. The countercyclical capital buffer rate specified under Article 1 paragraph 2 herein shall apply as of 1 January 2026. Reporting to the Central Bank of Montenegro
Article 3
Credit institutions shall report to the Central Bank of Montenegro on their countercyclical capital buffers calculated by applying the rate specified in Article 1 herein in the manner and within the deadlines specified under the Decision on Reporting to the Central Bank of Montenegro (OGM 128/20). Entry into Force
Article 4
This decision shall enter into force on the day of its publication in the Official Gazette of Montenegro and it shall apply as of 1 April 2025. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO
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Source: Central Bank of Montenegro — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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