CBCG and World Bank Conduct Credit Institution Resolution Simulation Exercise
23/10/2026
The CBCG, in cooperation with the World Bank’s Financial Sector Advisory Centre (FinSAC), conducted a resolution simulation exercise based on a fictional credit institution, aimed at testing the competent authorities- readiness for efficient and coordinated action in crisis situations. The exercise represents an important step in further strengthening the resolution framework and institutional capacity for safeguarding financial stability, protecting depositors, and safeguarding the public interest.
The resolution scenario of the fictional credit institution tested the functioning of internal procedures, the information exchange speed, and the preparation of key decisions under time constraints. Participants received new information incrementally and responded in real time, recreating conditions that closely mirrored a real crisis.
During the presentation and analysis of the results alongside the World Bank team and exercise participants, CBCG Governor Irena Radović highlighted that the exercise served as a test of the CBCG’s and other competent authorities' ability to act as a unified, coordinated, and efficient system. The Governor assessed that the exercise demonstrated a high level of institutional readiness and coordination.
“Our ambition extends beyond formal alignment with European legislation. We are building an institution capable of applying European standards in practice efficiently, independently, and decisively. The greatest value of this exercise lies not in proving we are perfect, but in identifying and addressing vulnerabilities before encountering a real crisis,” the Governor stated.
Martha Martinez Licetti, FinSAC Practice Manager for Finance, Competitiveness and Innovation for Europe and Central Asia, praised the organisation of the exercise and the CBCG’s commitment to strengthening crisis management capacity. Presenting the simulation results, FinSAC specialist Ismael Ahmad Fontan commended the professionalism and operational conduct of the participants.
In addition to the CBCG, representatives from the Ministry of Finance, the Deposit Protection Fund, the Capital Market Authority, and the Agency for Protection of Competition took part, bringing the total number of participants across all institutions to approximately 50.
The simulation is a part of Montenegro’s preparations for future participation in the European Banking Union and fulfilling obligations under Chapter 9 – Financial Services. The CBCG continues to enhance its capacity for managing banking crises, aiming to preserve financial stability, protect depositors, and safeguard the public interest.