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Euro Foreign Exchange Reference Rates as at: 16.01.2019.
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Reserve requirement

Pursuant to Article 18 of the Central Bank of Montenegro Law (OGM 40/10, 46/10, 06/13 and 70/17) and based on the provisions of the Decision on Bank Reserve Requirement to be Held with the Central Bank of Montenegro (OGM 88/17), banks are obliged to calculate, allocate and maintain reserve requirement by applying the ratio of 7.5% on the portion of the reserve requirement base comprising of demand deposits and time deposits with agreed maturity up to one year, while the ratio of 6.5% shall be applied to the portion of the base comprising of time deposits with agreed maturity over one year. The ratio of 7.5% shall be applied to deposits with agreed maturity over one year which have the cancellation clause in the period shorter than one year. As of January 2018, the base for the calculation of the reserve requirement includes demand and time deposits with the exception of the central banks’ deposits, and banks commenced the reporting pursuant to this Decision as of 20 February 2018.

The banks shall calculate the base during calculation period which is monthly period, from the first until the last calendar day in the respective month. Banks shall allocate and/or withdraw reserve requirement to their reserve requirement accounts in the country and/or to the Central Bank accounts abroad on the third Wednesday every month, and they may not allocate or hold their reserve requirement in any other form. The maintenance period shall be considered one month starting from the third Wednesday in the respective month until the day preceding the third Wednesday of the following month (see Reserve Requirements Calendar).

The Central Bank shall pay interest to the banks on 50% of the total allocated bank reserve requirement on a monthly basis, until the eighth day in a month for the previous month, at EONIA (Euro Over Night Index Average) rate minus 10 basis points annually, provided that the rate could not be below zero.

The banks may use up to 50% of their reserve requirement funds interest-free to maintain their daily liquidity, provided that they return the used amount on the same day.

A bank shall pay the fee specified in a separate Central Bank regulation if it fails to return the used amount of reserve requirement on the same day and on the amount of the difference between the prescribed and miscalculated or misallocated reserve requirement or if it fails to allocate reserve requirement by the specified deadline.

More information on this instrument could be found here.


Monthly data

As at 31 December 2018, calculated and allocated reserve requirement amounted to 251,9 million euros, of which 55,0% was allocated to the reserve requirement account in the country, and the remaining 45,0% to the CBCG accounts abroad.

Total banks' deposits, serving as the base for the calculation of the reserve requirement, averaged to 3.400,3 million euros. Demand deposits accounted for 65,6% of total deposits, while time deposits accounted for the remaining 34,4%.

in million euros

Calculation period

Reserve requirement base

Total deposits

Demand deposits

Time deposits

01.01 - 31.01.2018

2.001,66

1.234,68

3.236,34

01.02 - 28.02.2018

1.976,77

1.227,27

3.204,04

01.03 - 31.03.2018

2.015,56

1.217,16

3.232,72

01.04 - 30.04.2018

2.046,84

1.209,58

3.256,42

01.05 - 31.05.2018

2.114,94

1.212,37

3.327,31

01.06 - 30.06.2018

2.141,44

1.203,61

3.345,05

01.07 - 31.07.2018

2.186,37

1.202,39

3.388,76

01.08 - 31.08.2018

2.308,48

1.191,83

3.500,31

01.09 - 30.09.2018

2.340,14

1.146,31

3.486,45

01.10 - 31.10.2018

2.253,31

1.167,71

3.421,02

01.11 - 30.11.2018.

2.232,14

1.168,18

3.400,32

in million euros

The maintance
period

Reserve requirement
of the bank accounts
in the country

Reserve requirement
held with the account
of the CB abroad

Total calculated and
allocated reserve
requirement

21.02 - 20.03.2018

126,22

113,34

239,56

21.03 - 17.04.2018

123,76

113,34

237,10

18.04 - 15.05.2018

125,95

113,34

239,29

16.05 - 19.06.2018

127,64

113,34

240,98

20.06 - 17.07.2018

132,92

113,34

246,26

18.07 - 14.08.2018

134,20

113,34

247,54

15.08 - 18.09.2018

137.53

113,34

250,87

19.09 - 16.10.2018

146,00

113,34

259.34

17.10 - 20.11.2018

145,01

113,34

258,35

21.11 - 18.12.2018

140,09

113,34

253,43

19.12 - 15.01.2019

138,54

113,34

251,88

 

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