Regulatory Alerts2024-01-01
Decision on Reserve Requirements of Credit Institutions at the Central Bank of Montenegro
The Council of the Central Bank of Montenegro issued this decision to regulate how credit institutions calculate, allocate, and maintain reserve requirements with the Central Bank. It mandates a 5.5% reserve rate on demand and short-term deposits up to 365 days, and a 4.5% rate on longer-term deposits, with funds required to be held in euros. The regulation permits institutions to utilize up to 50% of their reserves for daily liquidity without fees, provided the end-of-day balance is maintained, and establishes specific reporting deadlines and penalties for non-compliance.
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