Changes in area of minimum reserve requirement

At its meeting today, the CNB Bank Board decided on the following changes in the area of minimum reserve requirement (MRR): The abolish the limits for daily bank balances in the actual fulfilment of MRR, effective from 22 February 2001. To reduce the base for the MRR calculation. Effective from 12 July 2001, liabilities towards nonbank entities whose maturity does not exceed 2 years are subject to MRR. To pay interest on MRR. Effective from 12 July 2001, the interest rate applied to MRR on the accounts of inter-bank payment system will be the same as that for the CNB main repo operation (at present the 2W tender for liquidity withdrawal) up to the MRR amount. This decision is in compliance with the programme for the gradual harmonisation of MRR parameters with the ECB regulations. The Bank Board expects the negative effect on the CNB´s performance to move around CZK 1.4 bn.

Pavel Zúbek
CNB, Public Relations Division