National Bank of Serbia made decision on increase in mandatory reserve for both dinar deposits and credits obtained from present 18 to 60%

The Monetary Board of the National Bank of Serbia (NBS) made the decision on June 7, 2006, on equalization of the rate of the mandatory reserve for deposits and credits in dinars obtained from abroad, with repayment period of up to two years, with earlier regulated rate of 60% on the obligations on the basis of foreign currency deposits and credits from abroad with the same repayment period.

NBS made the decision on change of mandatory reserves of business banks after it had noticed that certain banks, in May 2006, found way to reduce effects of previous increase in mandatory reserves to 60% on the obligations on the basis of foreign currency deposits and credits from abroad. At the same time, the rate of mandatory reserves on the obligations for deposits and credits in dinars received from abroad with the repayment period longer than 2 years increased from 18 to 40%, which means that it was eqalized to the rate of the mandatory reserve applied to the foreign currency basis.