Page 128 - Annual Report 2023

59 BANKA KOMBËTARE TREGTARE
Notes to the Consolidated Financial Statements for the year ended 31 December 2023
(amounts in USD, unless otherwise stated)

7. CASH AND BALANCES WITH CENTRAL BANK
Cash and balances with Central Bank as at 31 December 2023 and 31 December 2022 are detailed as follows:

31 December 2023 31 December 2022
Cash on hand 99,242,154 71,850,887
Deposits with the Central Bank of Kosovo 117,375,213 77,593,780
Bank of Albania
Current account 74,471,905 59,202,562
Statutory reserve 385,655,374 328,808,949
Accrued interest 60,557 35,483
460,187,836 388,046,994
676,805,203 537,491,661
In accordance with the Bank of Albania’s requirement relating to the deposit reserve, the Bank should maintain a minimum requirement
based on regulation no.29 “On the minimum required reserve maintained by banks with the Bank of Albania” in Albania as a statutory
reserve account, which during the month can be decreased to 70% of this level, provided that the monthly average is maintained.

Balances with CBK include the minimum required statutory reserve of 10% of customer deposits in Kosova.

Cash and cash equivalents as at 31 December 2023 and 31 December 2022 are presented as follows:

31 December 2023 31 December 2022
Cash and balances with Central Bank 676,805,203 537,491,661
Statutory reserve in Albania (385,655,374) (328,808,949)
Statutory reserve in Kosovo (68,900,709) (58,333,935)
Current accounts with banks 125,812,475 234,356,201
Demand deposits with banks 30,160,022 20,262,363
Placements with maturities of 3 months or less 144,122,668 168,068,648
522,344,285 573,035,989

8. PLACEMENTS AND BALANCES WITH BANKS

Placements and balances with banks as at 31 December 2023 and 31 December 2022 consisted as follows:
31 December 2023 31 December 2022
Placements 147,210,028 173,356,282
Cash collateral held by financial institutions 39,030,633 45,818,291
Current accounts 125,812,475 234,356,201
Demand deposits 30,160,059 20,262,407
Accrued interest 263,200 137,917
Impairment (14,075) (29,086)
342,462,320 473,902,012

Placements are held with resident and non-resident banks, the vast majority of which is from Organisation for Economic Cooperation and
Development (“OECD”) countries and have contractual maturities up to 1 year. Current accounts represent balances with correspondent
banks in the OECD countries.
Cash collateral represents mostly collateral held by financial institutions in relation to letters of credit issued to the Bank’s clients and
cash deposits that secure risks in relation to the credit cards activity of the Bank.