Regulatory Alerts2026-01-01
Decision on the Methodology for Valuation of Assets of Credit Institutions under Resolution Proceedings
The Council of the Central Bank of Montenegro issued this Decision to establish the methodology for independent asset valuation following the transfer of rights, assets, and liabilities or the application of the bail-in tool. The framework mandates a comparison between the actual treatment of shareholders and creditors in resolution proceedings and the hypothetical treatment had bankruptcy been initiated at the resolution decision date. It specifies valuation techniques, discount rates, and reporting requirements to ensure that no creditor suffers greater loss than they would have under standard insolvency proceedings.
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