Central Bank of Montenegro / Image: Wikipedia.org

As of the end of November, the banks in Montenegro held a required reserve of 307.79 million euros, according to the Central Bank of Montenegro (CBM).

Out of this total, 72.93 percent is maintained in local bank accounts as mandatory reserves, while 27.07 percent is kept with the CBM in foreign banks.

The average balance of bank deposits in October, which serves as the foundation for determining the required reserves, was 5.64 billion euros. Of this total, 85.54 percent relates to deposit types with applicable rates, while 14.46 percent pertains to other categories.

The required reserves were established following the CBM’s guidelines. This framework implements a compulsory reserve requirement of 5.5 percent on sight deposits and a 4.5 percent rate on time deposits with a maturity over one year.

For time deposits exceeding one year that allow for early withdrawal within a year, a 5.5 percent rate is applicable.

Banks are permitted to utilize up to 50 percent of their mandatory reserves to support daily liquidity needs, provided the amount is used on the same day.