Implementation of the bilateral measure with the Croatian National Bank (HNB) on resolution of credit institutions

10/03/2023

The Central Bank of Montenegro (CBCG) started bilateral activities with experts of the Croatian National Bank (HNB) in the area of resolution of credit institutions within the second phase of the regional IPA project “Programme for Strengthening the Central Bank Capacities in the Western Balkans with a view to the Integration to the European System of Central Banks”. The first HNB expert mission was carried out from 1 to 3 March 2023, continuing activities on further development of the CBCG resolution function. Inter alia, the first mission covered the following topics: organisation of the HNB resolution function and the cooperation with other stakeholders in Croatia primarily concerning the relations between HNB and Single Resolution Board (SRB) in Single Resolution Mechanism (SRM) framework, overview of the legal framework and Croatia’s position in the SRM framework, specific elements of the resolvability assessment for resolution planning, application of simplified obligations in the resolution planning process, changes to the MREL requirement in new regulations, calculation of the MREL requirement for resolution entities, eligibility criteria of MREL instruments and prior permissions for their reduction, request for subordination and calibration of MREL requirement for non-resolution entities, and overview of the reporting templates for monitoring compliance with MREL requirement including reporting for resolution planning.

The exchange of information and expertise with HNB experts concerning the transposition of relevant acquis related to the resolution of credit institutions is a part of the CBCG’s plan to fully align its regulatory framework in this area with the European regulatory framework within the shortest possible time.