Regulatory Alerts2024-01-01
Decision on Raising the Countercyclical Capital Buffer Rate
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.
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