As of the end of January, the mandatory reserve of banks, according to the data from the Central Bank of Montenegro (CBCG), amounted to EUR 311.62 million.
Of the total amount, 73.26% was held in the domestic accounts of the banks, while 26.74% was held in accounts with the CBCG abroad.
The average total deposit level in December of the previous year, which forms the basis for calculating the mandatory reserve, amounted to EUR 5.71 billion. Of the total deposit level, 85.44% were demand deposits, and 14.56% were term deposits.
Banks in Montenegro allocated the mandatory reserve based on a decision by the CBCG. This decision established a system for calculating the mandatory reserve, applying a rate of 5.5% on the part of the base composed of demand deposits and term deposits with a maturity of up to one year, and a rate of 4.5% on the part of the base composed of term deposits with a maturity of over one year.
For term deposits with a maturity of over one year that include a clause allowing early withdrawal within less than one year, a rate of 5.5% is applied.
Banks may use up to 50% of the allocated mandatory reserve interest-free to maintain daily liquidity, provided the amount used is returned on the same day.
