The National Bank of the Republic of Macedonia Council held its 15th session today, at which the Report on the Banking System in the third quarter of 2010 was adopted.
Skopje, 9 December 2010
Press release of the NBRM
The National Bank of the Republic of Macedonia Council held its 15th session today, at which the Report on the Banking System in the third quarter of 2010 was adopted.
On September 30,2010, the total assets of the banking system equaled Denar 287,832 million and its quarterly growth rate equaled 1.9%. The deposits of the non-financial entities reached Denar 202,202 million, registering quarterly growth of Denar 1,338 million, or 0.7%. The credits of the non-financial entities registered more intensified growth relative to the deposits, registering a quarterly growth of 1.9%. On September 30, 2010 the credits reached Denar 184,077 million. The credits/deposits ratio reached 91% at the end of the third quarter of 2010.
In the third quarter of 2010, the trend of worsening of the credit portfolio quality, according to certain indicators, shows preliminary signs of stoppage. Thus the share of the exposure classified in the risk categories "C", "D" and "E" in the total exposure equals 8.3%, which is by 0.3 percentage points less in comparison with the previous quarter. The average risk, calculated as a correlation between the allocated impairment and the total exposure to credit risk equals 6.8% and it remained unchanged relative to the previous quarter. However, the indicator for the share of the non-performing loans in the total credits is still high, and on September 30,2010 it reached 10.6% (10.1% on September 30,2010). The stagnation in the deterioration with part of the indicators is characteristic for the credit risk exposure towards the "enterprises and other clients" sector. With the "natural persons" sector, the deterioration of the indicators for the credit portfolio quality continued also in this quarter.
In the first nine months of 2010, the total profit of the banking system equals Denar 948 million. It is lower by 29.7% relative to the same period of 2009. The return on assets and liabilities equals 0.5% and 4%, respectively (on September 30,2009: 0.7% and 6%, respectively).
The liquidity of the banking system is stable. The banks maintain high and stable solvent position. On September 30,2010, the capital adequacy ratio at the level of the banking system equals 16.4% (by two times more than the legally prescribed minimum of 8%). According to the stress-test simulations conducted by the National Bank, the banking system and individual banks show relative resistance to the influence of the possible external shocks.
On the today's session of the National Bank Council, the Rules for amending the Rules for the manner and the procedure for trading and settlement of the securities transactions on the Over the Counter Market were adopted.
With the latest amendments to the Rules, the National Bank, in cooperation with the Ministry of Finance, prescribes the scope of the securities with which repo transactions on the Over the Counter Market can be concluded. These amendments are expected to contribute for further development of the money market and bigger flexibility in the liquidity management, not only by the banks and other economic entities, but by the National Bank, as well.
The National Bank Council discussed the Monthly Information for October 2010, revising and adopting the operating program of the Internal Audit Department for 2011, the medium-term operating program of the Internal Audit Department for 2011 - 2013 period, as well as other acts within its competence.
Governor's Office