Book Reserve Requirement in Montenegro Reached €308.5 Million at the End of December
As reported by the Central Bank of Montenegro (CBCG), the mandatory reserves of banks at the conclusion of December totaled 308.5 million euros.
Out of this total, 72.99 percent of the bank reserves were allocated, while 27.01 percent remained in accounts at the CBCG, according to eKapija.
The average total balance of bank deposits in November, which serves as the foundation for calculating the required reserves, was 5.65 billion euros. Of this deposit total, 85.41 percent was allocated to seeing applications, while 14.59 percent was not.
Banks in Montenegro have established the required reserves in accordance with the CBM Decision. This decision outlined a mandatory reserve system where a rate of 5.5 percent is applied to deposits with a maturity of up to one year, and a rate of 4.5 percent is imposed on deposits maturing beyond one year.
For deposits with maturities over one year that include a clause allowing for withdrawal in less than one year, a rate of 5.5 percent applies.
Banks are permitted to utilize up to 50 percent of the mandatory reserves to manage daily liquidity, provided that the utilized amount is accessed on the same day.