Skopje, 16 December 2011
Press release of the NBRM
Pursuant to the Memorandum for Maintaining Financial Stability and Managing the Financial Crisis in the Republic of Macedonia, concluded between the Ministry of Finance and the National Bank of the Republic of Macedonia, on December 16, 2011, the second session of the Financial Stability Committee was held. The session was attended by the Governor, the Minister of Finance and other representatives from both institutions, members of the Committee.
At today's regular session of the Committee, discussions were focused on the latest developments in the banking sector , as well as the potential effects the possible risk scenarios related to the current situation in the Euro area may have on its operating. In the third quarter of 2011, the banking system preserved its soundness and safety, although certain risk intensification in its operating has been registered. The banks' assets and credits continued to mount, although at a slower pace in comparison with the previous quarter. On the other hand, the deposits growth accelerated. The banks were cautious, thus directing part of this growth towards placements with foreign banks, which contributed for further strengthening of their liquidity. The dominant risk in the banks' operations, the credit risk, elevated, which can be perceived through the accelerated growth in the non-performing loans and larger exposure in the riskiest "D" category. However, the risks arising from the worsening of the credit portfolio quality are mitigating, having in mind the full coverage of the non-performing loans with impairment and special reserve. Also, the banks' solvency is more than twice higher than the prescribed minimum, thus providing sufficient capacity to absorb the possible negative shocks as a result of further risk intensification.
The various stress test scenarios, used for analyzing the of the banking system's resilience to different adverse shocks (including also the possible risk scenarios related to the current situation in the Euro area), show that the capitalization of the banking system is satisfactory, i.e. in none of the scenarios, the capital adequacy at the level of the banking system is not below the legally prescribed minimum of 8%.
Governor's Office
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