The CBBH has adopted the Amendment of Decision on Determining and Maintaining RR 12/6/2022 Tweet The Central Bank of Bosnia and Herzegovina (CBBH) has made a Decision on Amendment of the Decision on Setting and Maintaining Required Reserves and Defining Remuneration on the Reserve Amount, with purpose of adjustment with the European Central Bank (ECB) policy and mitigation of the impacts of the ECB benchmark interest rate growth on the operations of banks in BH. According to this Decision, the remuneration at the rate of 25 basis points is calculated and paid out for required reserve holdings with the base in the local currency, KM, while the remuneration at the rate of 10 basis points is calculated and paid on required reserve holdings with bases in foreign currencies and the local currency with currency indexation. Remuneration is not calculated for holdings exceeding required reserve. When making a decision on required reserves by the CBBH, all the relevant factors were considered, including the ECB decisions on benchmark rates and trends of key macroeconomic and financial sector indicators, taking care firstly of the currency board stability. The implementation of the Decision and its positive effects are expected to have a stimulating impact on commercial banks in BH with regard to setting the levels of interest rates on loans and the prices of services for businesses and households, which would finally mitigate the needs of considerable upward revisions of the prices of their services. The CBBH will continue to follow up with and adjust the CBBH remuneration policies depending on the trends on international financial markets and their influences on the financial sector of Bosnia and Herzegovina. The Decision will take effect on 01 January 2023.
