As of the end of November, the required reserves held by banks in Montenegro amounted to €307.79 million, according to data from the Central Bank of Montenegro (CBCG).
Of this total, 72.93% was allocated to domestic bank accounts for required reserves, while 27.07% was held in accounts with the CBCG abroad.
The average total deposits of banks in October, which form the basis for calculating the required reserve, stood at €5.64 billion. Of this amount, 85.54% was in demand deposits, and 14.46% was in time deposits.
Banks in Montenegro set aside the required reserve based on a decision by the CBCG, which established a reserve calculation system using a rate of 5.5% on deposits with a maturity of up to one year and 4.5% on those with a maturity of over one year.
For time deposits with a maturity longer than one year but with a clause allowing early withdrawal within one year, the 5.5% rate applies.
Banks can use up to 50% of the required reserve for daily liquidity without interest, provided the amount is returned the same day.
