According to data from the Central Bank of Montenegro (CBCG), the mandatory reserve of banks at the end of December amounted to 308.5 million EUR.
Of the total amount, 72.99% was held in mandatory reserve accounts within the country, while 27.01% was held in accounts with the CBCG abroad.
The average total deposit level of banks in November, which forms the basis for calculating the mandatory reserve, was 5.65 billion EUR. Of the total deposits, 85.41% were sight deposits, while 14.59% were term deposits.
Banks in Montenegro allocated their mandatory reserve based on a decision from the CBCG. The decision established a system for calculating the mandatory reserve using a rate of 5.5% on the part of the base that consists of sight deposits and deposits with a maturity of up to one year, and a rate of 4.5% on the part of the base consisting of deposits with a maturity of over one year.
Deposits with a maturity of over one year that include a clause allowing early redemption within less than a year are subject to the 5.5% rate.
Banks can use up to 50% of the mandatory reserve, without interest, to maintain daily liquidity, as long as the used amount is returned the same day.
