Page 132 - Annual Report 2022

Banka Kombëtare Tregtare Annual Report 2022 70

Banka Kombëtare Tregtare Sh.a.
Notes to the Consolidated Financial Statements for the year ended
31 December 2022 (Amounts in USD, unless otherwise stated)

7. Cash and balances with Central Bank
Cash and balances with Central Bank as at 31 December 2022 and 31 December 2021 are detailed as follows:

31 December 2022 31 December 2021
Cash on hand 71,850,887 69,280,576
Deposits with the Central Bank of Kosovo 77,593,780 97,456,505
Bank of Albania
Current account 59,202,562 71,869,335
Statutory reserve 328,808,949 297,773,231
Accrued interest 35,483 (10,462)
388,046,994 369,632,104
537,491,661 536,369,185
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 Kosovo and the minimum
cash deposit pledged as capital equivalency deposit.
Cash and cash equivalents as at 31 December 2022 and 31 December 2021 are presented as follows:
31 December 2022 31 December 2021
Cash and balances with Central Bank 537,491,661 536,369,185
Statutory reserve in Albania (328,808,949) (297,773,231)
Statutory reserve in Kosovo (58,333,935) (51,888,833)
Current accounts with banks 234,356,201 239,853,628
Demand deposits with banks 20,262,363 42,335,379
Placements with maturities of 3 months or less 168,068,648 253,966,440
573,035,989 722,862,568

8. Placements and balances with banks

Placements and balances with banks as at 31 December 2022 and 31 December 2021 consisted as follows:
31 December 2022 31 December 2021
Placements 173,356,282 258,010,355
Cash collateral held by financial institutions 45,818,291 17,229,952
Current accounts 234,356,201 239,853,628
Demand deposits 20,262,407 42,335,419
Accrued interest 137,917 (32,644)
Impairment (29,086) (22,937)
473,902,012 557,373,773

Placements are held with non-resident banks 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.