CBCG reported that banks in Montenegro held 346 million euros in mandatory reserves. The funds were allocated between accounts in the country, which held 75.95% of the total, and CBCG accounts abroad, which held 24.05%.
The central bank’s rules set reserve rates of 5.5% and 4.5% according to deposit maturity. The 5.5% rate applies to demand deposits and deposits with maturities of up to one year, while the 4.5% rate applies to deposits contracted for more than one year. Deposits with terms longer than a year but an option to terminate within a year are subject to the 5.5% rate.
The average bank deposit base used to calculate reserves stood at 6.35 billion euros in August. Demand deposits accounted for 85.38% of the total and term deposits for 14.62%.
Banks may use up to 50% of their reserve interest-free to maintain daily liquidity, provided they return the funds on the same day.
