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06/03/2017

The Central Bank of Montenegro Council held its sixth session today.

The Council passed the Decision on Amendments to the Decision on Bank Reserve Requirement to be Held with the Central Bank of Montenegro, decreasing the reserve requirement ratio by two percentage points, from 9.5% to 7.5%, i.e. from 8.5% to 6.5%, depending on the defined reserve requirement calculation base. Both calculation period and maintenance period with the CBCG were changed from weekly to monthly term, which is in line with regional and global practice, as well as with those of ECB, all having this period longer than 42 days. In doing so, as well as by decreasing the reserve requirement ratio, this monetary policy instrument is becoming gradually harmonised with the EBC legislation in this area. Releasing the portion of banks` funds used for appropriation, i.e. maintenance of reserve requirement, liquid funds of banks, which can stimulate credit activity, will increase.

The Council also discussed other current issues from its competence.