CBBH is Introducing Differentiated Required Reserve Rate

The Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) has passed the Decision on Introduction of Differentiated Required Reserve Rate on Commercial Banks' Deposits.

According to this Decision, required reserve rate on deposits which are included in the base for calculation of required reserve, and whose maturity is up to one year remains 14%, while required reserve rate on term deposits for the period longer than one year, will be decreased by 4%, i.e. from 14% to 10%.

This Decision will provide additional liquid funds for commercial banks in the amount of 370 million KM.

Besides extremely satisfactory liquidity of commercial banks in BH, CBBH has decided to make this decision in order to stimulate banks to initiate stronger credit activities in the country, and with special emphasis on encouraging strengthening of economic activities.

The Decision will become effective as of 1 January 2009.

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