Skopje, 27 September 2000
Press release of the NBRM
With reference to the questions posed by the media and submitted to the National Bank of the Republic of Macedonia, regarding the content of the diagnostic studies prepared by the auditing house Arthur Andersen for the four banks operating in the Republic of Macedonia, particularly Komercijalna Banka a.d. Skopje and its stability as a financial institution, we release the following
INFORMATION
The auditing house Arthur Andersen prepared diagnostic studies for four banks operating in the Republic of Macedonia, including Komercijalna Banka a.d. Skopje. These diagnostic studies were prepared upon request of the World Bank and the Republic of Macedonia, as a preparatory basis for conclusion of FESAL II arrangement with the World Bank. Namely, the primary goal of the preparation of these diagnostic studies is to determine the areas in the banking system of the Republic of Macedonia subject to reform, which will be covered by the arrangement with the World Bank. In accordance with the agreed terms and conditions accepted prior to the preparation of the aforementioned diagnostic studies, the National Bank of the Republic of Macedonia is neither authorized to publish the content of the diagnostic studies, nor to provide access of unauthorized persons thereto.
Additionally, in compliance with Article 47 of the National Bank of the Republic of Macedonia Act (Official Gazette of the Republic of Macedonia no. 29/96 - revised text and 37/98) and Article 78 of the Law on Banks (Official Gazette no. 63/2000), the National Bank of the Republic of Macedonia conducts permanent supervision of the banks’ operations:
· permanent off-site control of the banks’ operations
· direct on-site examination by full-scope and partial examinations. In accordance with the Annual Supervision Plan, each bank’s operation is subject to full-scope examination, at least once a year
These supervisory controls are in compliance with Article 3 of the National Bank of the Republic of Macedonia Act (Official Gazette of the Republic of Macedonia no. 29/96 - revised text and 37/98), according to which the National Bank of the Republic of Macedonia is responsible for providing and maintaining safe and stable banking system of the Republic of Macedonia.
The data from the accomplished supervision function are gathered in order to serve strictly determined purpose, aimed at identification of possible undertaken unjustified high risks by certain financial institution, which could ultimately endanger the stability of the banking system as a whole.
According to the data gathered from the accomplished supervisory controls, all the banks in the Republic of Macedonia to which the National Bank of the Republic of Macedonia has granted an operating license, including Komercijalna Banka a.d. Skopje, meet the required supervision standards regarding the riskness of their operations.
In order to achieve higher transparency in the operations and performances of the banks in the Republic of Macedonia, including Komercijalna Banka a.d. Skopje, the following data sources may be used:
· Annual Account revised by authorized auditing house, which the bank is required to publish. Accordingly, Komercijalna Banka a.d. Skopje has published its 1999 Annual Account in the daily newspapers “Nova Makedonija” and “Utrinski Vesnik” dated May 12, 2000;
· Report on the Supervision and Control Activities of the National Bank of the Republic of Macedonia, which the National Bank of the Republic of Macedonia submits to the Parliament and the Government of the Republic of Macedonia twice a year. From this year onwards, the Report on the Supervision and Control Activities of the National Bank of the Republic of Macedonia will be available to the public, as recommended by the World Bank and the International Monetary Fund. Accordingly, the 1999 Report on the Supervision and Control Activities of the National Bank of the Republic of Macedonia is in a process of printing and will be available for the public and the media in the following ten days, and will be free of charge.
Deputy Governor’s Office
of the National Bank of the Republic of Macedonia
Gligor Bishev, Ph.D.