Regulatory Alerts2026-01-01
Decision Amending the Regulation on Contractual Recognition of Write-Down and Conversion Powers for Third Country Law Liabilities
The Council of the Central Bank of Montenegro amended its decision to update the regulatory framework for contractual recognition of write-down and conversion powers regarding liabilities governed by third country law. The revision introduces Article 4a, which defines specific conditions under which credit institutions may deem such contractual recognition impracticable, and Article 4b, which mandates the content of contractual provisions for postponement or restriction of rights. These changes establish detailed notification templates and procedures for institutions to report liabilities that cannot be subject to bail-in mechanisms due to legal or operational constraints.
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