CBBiH changed the fee on excess funds above the required reserve

SARAJEVO, (Patria) - The Central Bank of Bosnia and Herzegovina (CBBiH) has aligned the fee rate on excess funds above the required reserve with the new deposit rate of the European Central Bank (ECB).

The rate has been further reduced from the current -0.40 to -0.50 percent.

The fee rate on the required reserve has remained unchanged. The change in the fee rate is based on the policy for fees on funds in banks' reserve accounts at the CBBiH, which has been in effect since May of the current year. With the new policy, adopted by the Governing Council of the CBBiH, the fee rate on excess funds above the required reserve has been equated to the rate applied by the European Central Bank (ECB) on commercial banks' deposits (Deposit Facility Rate), the CBBiH announced.

Among other things, the Governing Council of the ECB, at its meeting on September 12, 2019, made a decision to reduce the deposit rate by 10 basis points from the current -0.40 to -0.50.