Central Bank of BiH changed the Remuneration Rate on excess required Reserves

At its 3^rd meeting, held on 27 March 2019, the Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH) adopted the decision to change the remuneration rate on excess required reserves.

According to the new decision, the remuneration rate on excess required reserves is equal to the European Central Bank (ECB) deposit facility rate. Thus, the remuneration rate on excess required reserves has been changed from -20 bp to -40 bp. The remuneration rate on the reserve requirement has remained unchanged.

New policy on remuneration on funds in reserve accounts with the CBBH will be applied from 1 May 2019.

The CBBH will continue to implement the reserve requirement policy, in all its segments, in accordance with macroeconomic trends, the specific features of the BH financial system and the best international practices. The banks, the Entity Banking Agencies and the public will be informed in due time on any future changes in the reserve requirements policy.