According to the data of the Central Bank (CBCG), the required reserve of banks at the end of August amounted to EUR 275.49 million.
Of the total amount, 69.75 percent was allocated to the mandatory reserve accounts of banks in the country, and 30.25 percent to the accounts of the CBCG abroad.
The average balance of total bank deposits, which form the basis for calculating the required reserve, was EUR 5.05 billion in July. Of the total level of deposits, 82.85 percent refers to demand deposits, and 17.15 percent to term deposits.
Banks in Montenegro allocated a mandatory reserve based on the decision of the CBCG. That decision established a system for calculating the required reserve by applying a rate of 5.5 percent to the part of the base made up of demand deposits and deposits with a maturity of up to one year and a rate of 4.5 percent to the part of the base made of deposits with a maturity of more than one year.
On 50 percent of the allocated mandatory reserve, the CBCG pays the banks a monthly fee calculated at the rate of €STR (Euro short-term interest rate) minus ten basis points on an annual basis, with the fact that this rate cannot be lower than zero.
Banks can use interest-free up to 50 percent of the allocated mandatory reserve to maintain daily liquidity, if they return the used amount on the same day.
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