According to data from the Central Bank of Montenegro (CBCG), the mandatory reserve held by banks at the end of October totaled 305.59 million euros, as reported by Mina Business.
Out of this total, 72.73% was allocated to domestic bank accounts, while 27.27% was kept in the CBCG’s accounts abroad.
In September, the average total deposit balance of banks, which serves as the basis for calculating the mandatory reserve, was 5.6 billion euros. Of these deposits, 85.22% were demand deposits, and 14.78% were time deposits.
The mandatory reserve is calculated according to a decision made by the CBCG, which set the reserve requirement at 5.5% for deposits that are either demand deposits or have a maturity of up to one year. For deposits with a maturity longer than one year, a rate of 4.5% is applied.
A 5.5% rate also applies to time deposits longer than one year if they have a clause allowing early renewal within one year.
Banks are allowed to use up to 50% of the mandatory reserve for daily liquidity needs, without interest, provided they return the amount used on the same day.
