The National Bank of the Republic of Macedonia Council held a session today, with several issues within its operating area being discussed at.
Skopje, 31 July 2008
Press release of the NBRM
The National Bank of the Republic of Macedonia Council held a session today, with several issues within its operating area being discussed at.
The Council adopted the Report on the banking system of the Republic of Macedonia in the first quarter of 2008.
On March 31, 2008 the banking system of the Republic of Macedonia consisted of 18 banks and 11 savings houses. In the first quarter of 2008, the number of savings houses reduced by one savings house, whereas the number of banks in dominant ownership of foreign shareholders which increased by one bank. Also in this quarter, the main characteristics of the banking system were preserved: relatively high concentration of certain segments of financial activities, dominance of the large-size banks group, smaller activity of small size banks, high share of the foreign currency component in the banks' balance sheets, high credit growth. Also, during the analyzed quarter, the medium size banks continued widening, which is especially apparent in the crediting domain.
The credit risk remained to be the dominant risk the banking system is exposed to. All analyzed indicators for the quality of the credit risk exposure improved. The quality of the credit risk exposure to households remained at the same level as in the previous quarter. However, the quality of individual exposure to households, as well as the exposure based on credit cards and consumer credits registers certain worsening.
On March 31, 2008, the total gross credits of non-financial entities equaled Denar 137,020 million, which is quarterly rise of 9.7%, compared to the end of 2007. The quarterly growth rate of households' credits equaled 10.8%, while the quarterly increase in the enterprises' credits totaled 9.3%.
On March 31, 2008, the total deposits with the banking system totaled Denar 165,519 million. They registered more moderate growth rate in comparison with credits, which equaled 3.3% on a quarterly basis, i.e. 26.7%, annually.
The liquidity position of the banking system is on satisfactory level. The capital adequacy ratio is twice bigger than the legally prescribed minimum and it equaled 15.9%. The rate of return on assets and equity equaled 1.7% and 14.7%, respectively.
The NBRM Council reviewed the Quarterly Report, with the latest macroeconomic developments also being discussed. In the second quarter of 2008, certain restrain of the inflation was registered, which can be perceived through the monthly changes in the inflation (adjusted to seasonal influence), which, on average, are on the level registered in the same quarter of the previous year. Also, the basic inflation in the first half of the year is maintained on a relatively stable level. The monetary policy, together with the undertaken measures, intends to prevent the transfer of the preliminary effects on the higher food prices and energy on the inflation on middle and long term. The uncertainty arising from the continuous movement of both food prices on the international stock exchanges and prices of energy sources remain to be the main risk regarding the inflation. The foreign reserves went up compared to the end of the previous year, reaching Euro 1,547 million on July 11, 2008. Such movements are reflection of the favorable flows on the capital and financial account of the balance of payments. In June 2008, compared to the same month of the previous year, the broad monetary aggregate M4 is higher by 21.4%, while the total banks' placements with the private sector surged by 42.1%.
Governor's Office