Greater transparency and wider coverage of data from banks, as a support to financial stability
Skopje, 3 February 2023
At its regular meeting, the National Bank Council adopted the Decision on publishing reports and data by banks, which makes significant changes for increasing the coverage of data published by banks and the frequency of publications. Changes refer to increasing the banks' transparency to both the supervisory authorities and to the public. This makes further harmonization with European regulations, but also with the banking by-laws adopted by the National Bank in the past period for increasing precaution.
The Decision introduces new requirements for the publication of qualitative and quantitative indicators for the banks' operations and especially for the risk management and the corporate governance. According to the National Bank efforts to contribute to the climate risk management, the Decision prescribes new requirements that refer to the publication of data and information on the risks associated with climate changes and ecological, social and operational risks.
Banks are required to publish the most important indicators with semiannual dynamics, while the other data on an annual basis. The exception to the rule are systemically important banks that will have an obligation to report and publish on a more frequent basis. For the purpose of comparability and better informing of the public, the reports will be published in the prescribed form, while due to the need for significant changes in the banks' systems, the application of most of the reports will start from 1 January 2025.
At its meeting, the National Bank Council also adopted the Quarterly Report, which refers to the last quarter of 2022. Also during the last quarter of 2022, the National Bank adjusts the monetary policy, which started from the end of last year. The key interest rate was additionally increased on three occasions, by a total of 1.75 percentage points, reaching the level of 4.75% at the end of 2022. The tightening of the monetary policy aims to stabilize inflation expectations and to reduce price pressures, caused by external shocks, which have been present for a longer period. However, from November onwards the annual inflation rate has been gradually decreasing. Domestic economic activity in the first three quarters of 2022 is in accordance with the forecasted path, and the current prospects are in line with the expectations for further deceleration of the growth as a result of the energy crisis, the hindered supply and the consumer price crisis which tightened the financial conditions globally. Banks continue to provide credit support to the domestic economy, but at a more moderate pace and in line with the expectations, while thanks to the external position of the economy, foreign reserves remain within the safe zone. However, the uncertainty and the risks to the world and the domestic economy in the short and in the medium run remain pronounced, and the war in Ukraine is still the main source of risk, especially on the energy and food product markets. The National Bank continues to carefully monitor the key economic parameters and the potential risks from the domestic and external environment, for the purpose of appropriate adjustment of monetary policy and maintenance of medium-term price stability.