The mandatory reserve of banks at the end of December, according to data from the Central Bank (CBCG), amounted to 290.63 million EUR.
Of the total amount, 71.33 percent was allocated to banks’ reserve accounts domestically, and 28.67 percent to accounts held by the CBCG abroad.
The average total deposits of banks, which form the basis for calculating the mandatory reserve, stood at 5.33 billion EUR in November. Of the total deposit level, 83.47 percent pertained to demand deposits, while 16.53 percent were time deposits.
Banks in Montenegro set aside the mandatory reserve based on the decision of the CBCG. This decision established a system for calculating the mandatory reserve, applying a rate of 5.5 percent to 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 percent to the portion consisting of deposits with maturities exceeding one year.
For deposits with maturities exceeding one year but with an option for early withdrawal within one year, a rate of 5.5 percent is applied.
Since January 2018, the base for calculating the mandatory reserve has comprised both time deposits and demand deposits, excluding those of central banks.
CBCG pays banks a monthly fee for 50 percent of the allocated mandatory reserve, calculated at the rate of €STR (Euro Short-Term Rate) minus ten basis points annually, with this rate not falling below zero.
Banks can use up to 50 percent of the allocated mandatory reserve for maintaining daily liquidity, provided that the amount used is returned on the same day.
