CNB Council: Reserve requirement rate reduced from 12% to 9%

Published: 23/3/2020

At its session today, the Council of the Croatian National Bank adopted a Decision amending the Decision on reserve requirements by which it reduced the reserve requirement rate from 12% to 9%.

This reduction of the reserve requirement rate is aimed at freeing additional liquidity which should make it easier for the banking system and, ultimately, for the Croatian economy as a whole to weather the crisis we have found ourselves in.

The reduction of the reserve requirement rate will lower the overall amount of the reserve requirement by HRK 10.45bn and the Croatian National Bank will return the excess of the allocated kuna component of the reserve requirement, totaling HRK 6.33bn, to banks on 27 March 2020.

By reducing the reserve requirement rate, the Croatian National Bank will also bring its reserve requirements system closer to the European Central Bank’s minimum reserve requirements system that Croatia will transfer to once it adopts the euro.