On Oct. 10, CZC CB increased mandatory minimum reserves to 4%.
CZC CB advised that on Oct. 10, Banking council decided to increase the mandatory minimum reserves amount from the current rate of 2% to 4%, from Jan. 2, 2025.
Summary
Changes basis for calculating set amount of required minimum reserves, apart from liabilities from repo operations for banks, branches of foreign banks, and credit unions.
The new rate begins on the first day of the new minimum reserve maintenance cycle.
Aims to reduce costs of implementing monetary policy while maintaining effectiveness.
Effectiveness
The new rate begins on Jan. 2, 2025.
Nov. 2024 Act Issued
On Nov. 7, 2024, CZC CB published decree 323/2024 coll. amending decree 253/2013 coll., laying down conditions for creation of mandatory minimum reserves.
Decree of Oct. 31, 2024, issued Nov. 7, 2024, received Dec. 13, summarized Dec. 19.
In S, Para 1, Letters a) and b) of Decree 253/2013 Coll. which sets out the conditions for creation of mandatory minimum reserves, text "2%" is replaced by the text "4%".
The rate of minimum reserve requirements set out in S 3(1)(a) and (b) , as amended from Jan. 1, 2025 apply for the first time for maintenance period starting Jan. 2, 2025.
