Regulatory Alerts2012-01-30
Minimum Reserve Requirements
The Board of the Central Bank of the Republic of Kosovo issued this regulation to establish a mandatory 10 percent minimum reserve ratio for all Kosovar banks, calculated against liabilities with maturities under one year. Banks must maintain daily minimum balances in CBK deposits and up to 50 percent vault cash, with interest paid on qualifying balances and a one-month maintenance cycle governing reporting and compliance. The rule repeals prior liquidity reserve regulations, imposes fines or payment system exclusion for non-compliance, and grants exemptions to insolvent institutions while taking effect on January 16, 2012.
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