According to data from the Central Bank of Montenegro (CBCG), the mandatory reserves of Montenegrin banks amounted to €327.38 million at the end of September, MINA reported.
Of this total, 74.98% was held in reserve accounts within Montenegro, while 25.02% was held in CBCG accounts abroad.
The average total bank deposits in August, which serve as the basis for calculating the mandatory reserve, amounted to €5.99 billion. Of these deposits, 85.22% were demand deposits and 14.78% were term deposits.
Banks in Montenegro allocate their mandatory reserves in accordance with a CBCG decision, which sets the following reserve requirements:
- 5.5% applied to the portion of deposits consisting of demand deposits and term deposits with a maturity of up to one year, and
- 4.5% applied to deposits with a maturity longer than one year.
For deposits with a maturity of more than one year that include a clause allowing early withdrawal within less than one year, the 5.5% rate also applies.
Banks are allowed to use up to 50% of their allocated mandatory reserves interest-free to maintain daily liquidity, provided the borrowed amount is repaid on the same day.
