As of the end of November, the mandatory reserve of banks, according to the Central Bank of Montenegro (CBCG), amounted to 292.05 million EUR.
Of the total amount, 71.47% was allocated to the accounts of mandatory reserves of banks in the country, and 28.53% to the accounts of the CBCG abroad.
The average total deposit amount of banks, which forms the basis for calculating the mandatory reserve, was 5.35 billion EUR in October. Of the total deposit level, 83.44% pertains to demand deposits, and 16.56% to 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% to the part of the basis consisting of demand deposits and deposits contracted with a maturity of up to one year, and a rate of 4.5% to the part of the basis consisting of deposits contracted with a maturity exceeding one year.
For deposits contracted with a maturity exceeding one year that have a clause allowing for early withdrawal within a period of less than one year, a rate of 5.5% is applied.
The basis for calculating the mandatory reserve since January 2018 includes time deposits and demand deposits, excluding those of central banks.
CBCG pays banks a monthly fee on 50% of the allocated mandatory reserve, calculated at the €STR rate (Euro Short-Term Rate) reduced by ten basis points annually, with the proviso that this rate cannot be lower than zero.
Banks can use up to 50% of the allocated mandatory reserve without interest for maintaining daily liquidity, provided that the amount used is returned on the same day.
