According to the Central Bank of Montenegro (CBCG), the mandatory reserve of banks amounted to EUR 287.38 million at the end of April.
Of this total, 71% was held in mandatory reserve accounts within the country, while 29% was maintained in CBCG accounts abroad.
In March, the average balance of total bank deposits, which serve as the basis for calculating the mandatory reserve, was EUR 5.27 billion. Of these deposits, 84.12% were demand deposits, and 15.88% were time deposits.
Montenegrin banks have allocated their mandatory reserves based on a CBCG decision. This decision established a calculation system with a rate of 5.5% applied to the portion of the base consisting of demand deposits and deposits with maturities up to one year, and a rate of 4.5% applied to deposits with maturities over one year.
Deposits with maturities over one year that include a clause allowing withdrawal within a year are subject to a 5.5% rate.
Since January 2018, the calculation base for mandatory reserves has included both demand and time deposits, excluding those of central banks.
CBCG pays banks a monthly fee on 50% of the allocated mandatory reserves, calculated at the rate of €STR (Euro Short-Term Rate) minus ten basis points annually, provided this rate is not less than zero.
Banks are allowed to use up to 50% of the allocated mandatory reserves interest-free for maintaining daily liquidity, as long as the used amount is returned the same day.
