The Central Bank (CBCG), in cooperation with the Association of Banks (UBCG), organized a meeting with representatives of commercial banks, where it presented key aspects of the upcoming implementation of the Bank Recovery and Rehabilitation Directive (BRRD 2). In the process of harmonizing with the European regulatory framework, the CBCG amended the Law on the Rehabilitation of Credit Institutions, as well as the Law on Bankruptcy and Liquidation of Banks. After receiving the evaluation of these documents by the European Commission, the CBCG expects that they will begin to be applied in Montenegro in the first months of 2024. The presented BRRD 2 Directive will amend a significant number of provisions of both laws, with the most significant aspect relating to qualified liabilities that banks will use to fulfill the minimum requirement for regulatory capital and qualified liabilities (MREL requirement).
Amendments to the above-mentioned two Acts, bring certain news for banks. This particularly refers to the following items:
– calculation of the MREL requirement,
– conditions for qualified liabilities that meet the MREL requirement,
– establishment of adequate internal procedures in banks that enable efficient rehabilitation of banks,
To that end, in cooperation with the Association of Banks, a presentation was organized at the premises of the CBCG, where representatives of the CBCG gave more details about the latest requirements of the regulation, as well as provided answers to the questions of bank representatives.