Decision on Determining and Maintaining Mandatory Reserves and Determining Compensation on Reserve Amount (Consolidated Text)

Based on Article 2, paragraphs 3, points a, d, f, and g, Article 7, point b), and Articles 36 and 57 of the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of BiH", nos. 1/97, 29/02, 8/03, 13/03, 14/03, 9/05, 76/06, and 32/07), the Governing Board of the Central Bank of Bosnia and Herzegovina, at its 1st meeting held on January 29, 2026, adopts

DECISION

on determining and maintaining mandatory reserves and determining compensation on the reserve amount (consolidated text)

Article 1

This Decision regulates the method of calculating and holding mandatory reserves and determining the compensation of the Central Bank of Bosnia and Herzegovina (hereinafter: Central Bank) to banks on the reserve amount, in accordance with Article 36 of the Law on the Central Bank of Bosnia and Herzegovina.

Article 2

A bank that has a permit from the competent banking agency to conduct banking business is obliged to hold funds in the reserve account at the Central Bank to fulfill the mandatory reserve at the level and in the manner determined by this Decision.

Article 3

(1) The base for calculating the mandatory reserve consists of deposits and borrowed funds, regardless of the currency in which the funds are expressed. The base in the domestic currency for calculating the mandatory reserve in BAM consists of deposits and borrowed funds in BAM. The foreign currency base for calculating the mandatory reserve in EUR consists of deposits and borrowed funds in BAM with a currency clause, and deposits and borrowed funds in foreign currencies.

(2) The mandatory reserve is calculated based on the balance of funds from paragraph (1) of this Article, expressed according to residual maturity, at the end of each day when the Central Bank makes changes to reserve accounts (hereinafter: working day), during the calculation period preceding the maintenance period.

(3) The calculation period (period for calculating mandatory reserves) begins on the 1st, 11th, and 21st day of every month, and ends on the 10th, 20th, and last day of the month.

Article 4

(1) The bank is obliged to submit a report on the status of deposits and borrowed funds expressed in convertible marks (BAM) and EUR to the Central Bank after each calculation period, no later than within three working days after the end of the calculation period, on the "Report for Mandatory Reserve Calculation" form prescribed by this Decision, which constitutes an integral part of it.

(2) In addition to the data submitted on the form from paragraph (1) of this Article via email, the bank is obliged to submit the same data within the same period and in electronic form in the manner determined by the technical instructions issued by the Central Bank.

Article 5

(1) The mandatory reserve is calculated as a mandatory reserve in BAM on the domestic currency base and as a mandatory reserve in EUR on the foreign currency base.

(2) The mandatory reserve rate applied by the Central Bank is:
10% on the domestic currency base with a residual maturity of up to one year, 10% on the foreign currency base with a residual maturity of up to one year, 10% on the domestic currency base with a residual maturity of over one year, 10% on the foreign currency base with a residual maturity of over one year.

Article 6

The funds by which a bank can maintain the mandatory reserve, calculated in accordance with this Decision, are:
for the mandatory reserve in BAM, the positive balance of funds of that bank in the BAM reserve account at the Central Bank, at the end of each working day during the maintenance period, for the mandatory reserve in EUR, the positive balance of funds of that bank in the EUR reserve account at the Central Bank, at the end of each working day during the maintenance period.

Article 7

(1) The Central Bank calculates compensation to the bank on the amount of funds that the bank holds in the BAM reserve account during the maintenance period:
for funds of the mandatory reserve in BAM – at a rate of 50 basis points, for funds above the mandatory reserve in BAM – at a zero rate.

(2) The Central Bank calculates compensation to the bank on the amount of funds that the bank holds in the EUR reserve account during the maintenance period:
for funds of the mandatory reserve in EUR – at a rate of 30 basis points, for funds above the mandatory reserve in EUR – at a zero rate.

Article 8

The Central Bank makes changes to the balance of the bank's BAM reserve account and EUR reserve account for the amount of compensation from Article 7 of this Decision within a period of up to five days, calculated from the last day of the month in which the bank was calculated compensation for the mandatory reserve maintenance period.

Article 9

A bank has not fulfilled the mandatory reserve:
if during the mandatory reserve maintenance period in BAM it does not ensure total funds in the BAM reserve account, or if during the mandatory reserve maintenance period in EUR it does not ensure total funds in the EUR reserve account, or in full if it does not timely submit the correctly and completely filled prescribed form of the Report for Mandatory Reserve Calculation and data in electronic form, in accordance with Article 4 of this Decision.

Article 10

(1) The Governor of the Central Bank is obliged to submit a report on the application of this Decision to the Governing Board at least once quarterly.

(2) When a bank fails to fulfill the mandatory reserve, the Central Bank takes measures prescribed by Article 36, point 5 of the Law on the Central Bank of Bosnia and Herzegovina.

Article 11

For the purposes of this Decision, the meaning of certain terms is as follows:

bank
– a commercial bank that has a permit to operate from the Banking Agency of the Federation of Bosnia and Herzegovina or the Banking Agency of the Republika Srpska,

BAM reserve account
– an account at the Central Bank where the bank holds reserve funds in BAM to fulfill the mandatory reserve,

EUR reserve account
– an account at the Central Bank where the bank holds reserve funds in EUR to fulfill the mandatory reserve,

base for calculating mandatory reserves
– the average of the bank's deposits and borrowed funds regardless of the currency in which the funds are expressed, according to the report submitted by the bank to the Central Bank on the prescribed form in accordance with Article 4 of this Decision, on which the obligation is calculated. The base for calculating the mandatory reserve consists of the domestic currency base, BAM, and the foreign currency base. The foreign currency base consists of the base in BAM with a currency clause and the base in foreign currencies,

average balance – average
– the sum of accounting balances of deposits and borrowed funds according to the report for mandatory reserve calculation, for each working day divided by the number of working days in the calculation period,

mandatory reserve in BAM of the bank is calculated by multiplying the base for calculating the mandatory reserve in the domestic currency by the corresponding mandatory reserve rate and represents the minimum amount of funds that the bank must hold as average daily reserves during the maintenance period in the BAM reserve account at the Central Bank,

mandatory reserve in EUR of the bank is calculated by multiplying the foreign currency base for calculating the mandatory reserve by the corresponding mandatory reserve rate and represents the minimum amount of funds that the bank must hold as average daily reserves during the maintenance period in the EUR reserve account at the Central Bank,

maintenance of mandatory reserve
– holding the prescribed level of monetary deposits in the BAM reserve account and in the EUR reserve account at the Central Bank, which are calculated as average daily reserves in the calculation period,

fulfillment of mandatory reserve
– fulfilling all conditions set by the Central Bank for maintaining the mandatory reserve regarding the provision of the required amount of reserve funds, submission of prescribed reports within prescribed deadlines,

mandatory reserve rate
– the percentage applied to the base for determining the amount of the mandatory reserve,

period for calculating mandatory reserves
– the maintenance period of mandatory reserves preceding the maintenance of mandatory reserves, for which data on the base for determining the mandatory reserve are submitted,

period of maintenance of mandatory reserve – the period in which the bank is obliged to maintain the mandatory reserve, which begins on the 1st, 11th, and 21st day of every month, and ends on the 10th, 20th, and last day of the month,

compensation
– interest that the Central Bank calculates on the amount of funds of that bank in the BAM reserve account and EUR reserve account, at the Central Bank,

compensation rate
– the rate applied to the mandatory reserve, or to the amount of funds above the mandatory reserve,

penalty interest for non-maintenance of mandatory reserves – a monetary fine for a bank that does not maintain mandatory reserves at the prescribed level,

working day
– any day when the Central Bank conducts transactions on reserve accounts,

total mandatory reserve in BAM of the bank represents the sum of average daily mandatory reserves in BAM for working days during the maintenance period,

total mandatory reserve in EUR of the bank represents the sum of average daily mandatory reserves in EUR for working days during the maintenance period,

residual maturity represents the remaining time to maturity of obligations, which implies that deposits and borrowed funds with a term of "up to one year" and "over one year" in the "Report for Mandatory Reserve Calculation" should be recorded according to the remaining time to maturity of obligations.

Article 12

(1) During the transitional period from January 1, 2024, to December 31, 2026 (hereinafter: transitional period), the bank will maintain the calculated mandatory reserve in EUR by holding 95% of the BAM equivalent of the calculated mandatory reserve in EUR in the BAM reserve account and holding 5% of the calculated mandatory reserve in EUR in the EUR reserve account.

(2) During the transitional period, the Central Bank will:
for the part of the mandatory reserve in EUR funds that the bank holds in the BAM reserve account in accordance with paragraph (1) of this Article, calculate compensation at the corresponding rate relating to the mandatory reserve in EUR funds from Article 7, paragraph (2), point a) of this Decision, and for funds above the mandatory reserve in the BAM reserve account, or in the EUR reserve account, calculate compensation at the corresponding rates from Article 7, paragraph (1), point b) of this Decision, or from Article 7, paragraph (2), point b) of this Decision.

(3) During the transitional period:
the mandatory reserve in EUR of the bank is calculated by multiplying the foreign currency base for calculating the mandatory reserve by the corresponding mandatory reserve rate and represents the minimum amount of funds that the bank must hold as average daily reserves during the maintenance period, in the EUR reserve account and in the BAM reserve account at the Central Bank; the total mandatory reserve in the bank's BAM reserve account represents the sum of average daily mandatory reserves in BAM and the part of average daily mandatory reserves in EUR determined in the manner prescribed by paragraph (1) of this Article for working days during the maintenance period; the total mandatory reserve in the bank's EUR reserve account represents the sum of the part of average daily mandatory reserves in EUR determined in the manner prescribed by paragraph (1) of this Article for working days during the maintenance period.

Article 13

The Governor of the Central Bank is authorized to adopt regulations for the implementation of this Decision.

Article 14

With the entry into force of this Decision, the Decision on Determining and Maintaining Mandatory Reserves and Determining Compensation on Reserve Amount ("Official Gazette of BiH", nos. 70/21, 53/22, 81/22, 43/23, 61/23, 54/24, 77/24, 16/25, 54/25, and 73/25) ceases to be valid.

Article 15

(1) This Decision enters into force on the eighth day from the date of publication in the "Official Gazette of BiH".

(2) This Decision will also be published in the "Official Gazette of the Federation of Bosnia and Herzegovina", the "Official Gazette of the Republika Srpska", and the "Official Gazette of the Brčko District of Bosnia and Herzegovina".

Chairperson
of the Governing Board of the Central Bank Number: UV-122-02-1-242-10/26 of Bosnia and Herzegovina Sarajevo, January 29, 2026

GOVERNOR
dr. Jasmina Selimović

NAME OF THE BANK
REPORT FOR MANDATORY RESERVE CALCULATION
for the period from ................. to ................. Number of working days in the period .................

DESCRIPTION OF POSITIONS	Average balance of funds in BAM (by residual maturity)	Average balance of funds in EUR (by residual maturity)
BASE FOR MANDATORY RESERVE CALCULATION	BAM	Other currencies
		BAM with currency clause expressed in EUR
		Foreign currencies expressed in EUR
		Other currencies total in EUR
1	2	3	4=2+3
1 - Deposits and borrowed funds from non-residents
Up to one year
Correspondent accounts of non-resident banks
Short-term deposits of non-residents
Short-term loans from non-residents
Short-term securities held by non-residents
Over one year
Long-term deposits of non-residents
Long-term loans from non-residents
Long-term securities held by non-residents
1 - TOTAL AMOUNT
1a) up to one year
1b) over one year
2 - Demand deposits of residents
Central government deposits
Entity government deposits
Canton government deposits
Municipal government deposits
Social insurance fund deposits
Other non-bank domestic sectors
2 - TOTAL AMOUNT
3 - Time and savings deposits of residents
Up to one year
Central government deposits
Entity government deposits
Canton government deposits
Municipal government deposits
Social insurance fund deposits
Other non-bank domestic sectors
Over one year
Central government deposits
Entity government deposits
Canton government deposits
Municipal government deposits
Social insurance fund deposits
Other non-bank domestic sectors
3 - TOTAL AMOUNT
3a) up to one year
3b) over one year
4 - Restricted deposits
a) Up to one year
b) Over one year
4 - TOTAL AMOUNT
5 - Government lending funds
a) Up to one year
b) Over one year
5 - TOTAL AMOUNT
6. Securities held by residents
a) Up to one year
b) Over one year
6 - TOTAL AMOUNT
7 - Other liabilities
Other - part relating to loans from non-bank domestic sectors
a) Up to one year
b) Over one year
7 - TOTAL AMOUNT
TOTAL (1+2+3+4+5+6+7)
TOTAL up to 1 year (1a+2+3a+4a+5a+6a+7a)
TOTAL over 1 year (1b+3b+4b+5b+6b+7b)

Place, date:
Stamp:
Signature of responsible person:
Name and surname:
Contact phone:

DESCRIPTION OF POSITIONS	Average balance of funds in BAM	Average balance of funds in BAM
LIABILITIES ON WHICH MANDATORY RESERVE IS NOT CALCULATED	BAM	Other currencies
		BAM with currency clause expressed in BAM
		Foreign currencies expressed in BAM
		Other currencies total in BAM
1	2	3	4=2+3
I Liabilities to banks that hold mandatory reserves at CBBH
deposits
borrowed funds
TOTAL I
II
Long-term loans from non-residents up to 1992 and obligations based on old foreign currency savings of citizens
III
Loans from foreign banks obtained through the ministry of finance of entity governments - the bank is only an intermediary, while the entity government is the guarantor and debtor
TOTAL (I+II+III)

Place, date:
Responsible person: