Bosnia's C-Bank Cuts Reserve Requirements for Commercial Banks

The decision, which will take effect on January 1, will secure an additional 370 million marka ($267 million/189 million euro) of liquid funds at the disposal of commercial banks, CBBH said in a statement.

“Despite the satisfying liquidity of commercial banks in Bosnia, CBBH has made this decision in order to stimulate the banks into bigger credit activity so that they would contribute to the strengthening of economic activities,” the statement said.

This is the third measure the central bank adopts in response to the global financial crisis. In October, it cut the mandatory reserve requirements for commercial banks to 14% from 18% to boost banks' liquidity. CBBH also scrapped its mandatory reserves requirement for local banks' credit lines from foreign lenders as of November 1.

(1 euro = 1.95583 Bosnian marka)