Guidelines for Portfolio Selection

In order to adequately prepare for the implementation of the Asset Quality Review (AQR) process, the Central Bank, with the help of CBCG’s AQR Consultant E&Y Serbia, developed Guidelines for portfolio selection and submitted portfolio selection forms to banks on 21 August 2020. The guidelines prescribe the organisation, data, and methodology for conducting portfolio selection, which is the starting point for the entire AQR process. The portfolio selection guidelines and methodology is largely in line with the ECB methodology, taking into account the specifics of the banking system in Montenegro.

Applying the specific criteria from the Guidelines to the data submitted by banks, and their subsequent verification by the CBCG, the selected portfolios will include most of the bank’s assets of material significance, thus contributing to the efficiency of the entire AQR process.