BUSINESS

Central Bank of BiH changed the Remuneration Rate on Excess Required Reserves

The Central Bank of Bosnia and Herzegovina (CBBH) adjusted the remuneration rate on excess required reserves with the European Central Bank’s (ECB) new deposit facility rate. The rate is further reduced from the current -0.40% to -0.50%. The remuneration rate on required reserves has remained unchanged.

The change of remuneration rate is based on the policy of remuneration on funds in reserve accounts with the CBBH, which has been in effect since May this year. With the new policy, adopted by the Governing Board of the CBBH, the remuneration rate on excess required reserves has been made equal with the deposit facility rate of the ECB.

Among other things, at its meeting held on 12 September 2019, the Governing Board of the ECB adopted the decision on reducing the deposit facility rate by 10 bp, from current -0.40% to – 0.50%.

 

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