The update amends resolution fund contribution calculations for credit institutions in Montenegro, which are licensed banks subject to prudential supervision and deposit-taking regulation, satisfying the Strong Yes criteria for Retail Banking.
Low confidence — REQUIRES HUMAN REVIEW. While the amendment addresses derivative exposure calculations that touch on investment-related instruments, the primary focus is on prudential capital and resolution fund mechanics for licensed banks, not investment services or asset management.
Specialism
The update establishes mandatory calculation methodologies and contribution requirements for credit institutions to the resolution fund, which is a core recovery and resolution planning obligation.
Mandatory inheritance: Recovery and Resolution Plans is a child of Prudential Standards and Governance, so Prudential Standards must be raised as the secondary tag.
2026-03-10 09:17:02·arahman@vixio.com
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TITLE: Montenegro's Central Bank Amends Decision on Ex-Ante Contributions Calculation for Credit Institutions
BODY:
On 17 April 2025, the Council of the Central Bank of Montenegro passed a decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund. The amendment updates the methodology for calculating liabilities arising from derivative contracts that credit institutions must contribute to the resolution fund.
The amendment introduces detailed provisions for determining the exposure value of derivatives, including the mark-to-market method and a simplified exposure method. Key changes include: refined definitions of derivatives and derivative-related liabilities; new calculation methodologies for exposure values of derivative contracts on a quarterly basis; provisions allowing credit institutions to account for netting agreements and novation contracts when calculating exposure values; and specific treatment of variation margin compensation amounts. The amendment establishes three calculation approaches: the mark-to-market method, which determines replacement cost and potential future credit exposure; the simplified exposure method for smaller derivative portfolios; and recognition of contractual netting arrangements as risk-reducing measures. The decision includes detailed percentage weightings for different derivative categories (interest-rate contracts, foreign exchange, equities, precious metals, and commodities) based on residual or original maturity periods, set out in three tables within Annex 3.
The amendment applies to all credit institutions operating in Montenegro and affects how they calculate their annual ex-ante contributions to the resolution fund. The decision entered into force on the eighth day following publication in the Official Gazette of Montenegro (OGM 40/25).
**Reference:**
Decision Amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25)