As reported by the Central Bank of Montenegro (CBCG), the mandatory reserves of banks reached €294.58 million at the end of August.
Out of this total, 71.71% is held in domestic accounts, while 28.29% is maintained in accounts with the CBCG abroad.
In July, the average total deposits in banks amounted to €5.4 billion. Of this, demand deposits accounted for 84.85%, while time deposits made up 15.15%.
The CBCG established the required reserves based on a specific decision, applying a rate of 5.5% to demand deposits and deposits with maturities of up to one year, and a rate of 4.5% for deposits with maturities longer than one year.
For time deposits over one year that include a break clause allowing for earlier withdrawal, a rate of 5.5% is also applied.
Banks can utilize up to 50% of their required reserves without interest to maintain daily liquidity, as long as the amount used is returned on the same day.
