As of the end of February, the required reserve of banks amounted to €312.18 million, according to data from the Central Bank of Montenegro (CBCG).
Of the total amount, 73.31% was allocated to the banks’ reserve accounts in the country, while 26.69% was held in the CBCG’s accounts abroad.
The average total deposit level of banks in January, which forms the basis for calculating the required reserve, stood at €5.72 billion. Of this total, 85.4% were demand deposits, and 14.6% were time deposits.
Banks in Montenegro have set aside the required reserve based on a decision from the CBCG. This decision established a reserve calculation system using a rate of 5.5% on the portion of the base consisting of demand deposits and deposits with a maturity of up to one year, and a rate of 4.5% on the portion of the base consisting of deposits with a maturity of over one year.
For deposits with a maturity of over one year that have a clause allowing for reclassification within less than a year, a 5.5% rate is applied.
Banks can use up to 50% of the required reserve, without interest, for maintaining daily liquidity, provided the used amount is returned on the same day.
