NBS lowers banks' required reserves

At its meeting today, the Executive Board of the National Bank of Serbia (NBS) adopted the new Decision on Banks’ Required Reserves with the National Bank of Serbia. The ratio of FX required reserves on banks’ sources of funding of up to two-year maturity is lowered from 30% to 29%, that is, from 25% to 22% for sources of over two years, the NBS announced on its website.

The share of FX required reserves allocated in dinars is raised by 5 percentage points – to 20% for funding sources of up to two years, and 15% for sources of over two years.

According to the NBS, "this measure aims to contribute to the stabilization of inflation over the projected period, support moderate lowering of borrowing costs and facilitate refinancing, contribute to the stabilization in the foreign exchange market, and stimulate banks to obtain longer-term sources of funding".