Skopje, 27 February 2021
The twinning project Strengthening the institutional capacity of the National Bank in the process of its accession to the ESCB was successfully implemented. Two presentations in the field of banking supervision and regulation were held.
The National Bank is committed to harmonizing its regulations and practices with the EU acquis in the field of banking supervision. This is one of the priorities of the EU-funded twinning project Strengthening the institutional capacity of the National Bank in the process of its accession to the ESCB. Specifically, one of the components of this important project refers to the internal liquidity adequacy assessment process which was introduced as a novelty last year, as well as to the improvement of claim collection and NPL management by creditors. Our experts implemented these project activities in cooperation with their counterparts from the central banks of Germany, the Netherlands and Croatia.
Yesterday, a virtual event was held, presenting some of the project deliveries.
“For further alignment with the ESCB standards, based on the transferred experience and in line with the best practices, the National Bank has developed an internal methodology, i.e. Guide to internal liquidity adequacy assessment process. The Guide contains principles that ensure consistent approach in the supervisory assessment of this process. On the other hand, clear and transparent communication of the National Bank expectations of this process, by releasing information on its website, through mutual dialogue and other forms of communication with the banks, will improve the framework and management of this process", said Viktorija Gligorova, Director of the Supervision Sector of the National Bank in her introductory address.
“The EC country report already for several years notes steady progress and moderate level of preparation in the area of financial services, whereas banks and banking institutions make the major part. During policy dialogue, including the meeting of the subcommittee on internal market and competition held the day before this event, the EC encourages the national authorities, to continue to transpose the acquis, having in mind the size and the level of development of the local market. We are happy that with the EU assistance and the on-going twinning project there is an opportunity to exchange peer-to-peer experience with the counterparts from the central banks of Germany, the Netherlands and Croatia. No need to mention that all these activities are crucial to maintain financial stability, prudential policies and to ensure good consumer protection to directly benefit all citizens of the country.” – said Ruzhica Andronikova, advisor/programme manager in the Delegation of the European Union.
In the first part of the event, the National Bank representatives referred to the process of supervisory review evaluation process (SREP), the influence of internal liquidity adequacy assessment process on corporate governance, the National Bank internal liquidity adequacy assessment process methodology, its principles and initial knowledge and best practices acquired by evaluating the first internal liquidity assessment reports submitted by banks in 2020.
In the second part of the event, representatives of the Croatian National Bank presented their experiences and legal framework applicable in the Republic of Croatia regarding the sale of loans and discussed the solutions that could be applied in our country. The conveyed experience will help the National Bank to consider possibilities for further improvement of domestic regulations.
The event tackled several issues related to the practical application of both aspects of the presentations showing the readiness of banks to accept and implement the EU experiences and practices. The success of this project was reaffirmed with the continuous implementation of activities by the National Bank for harmonization of domestic regulations and practices with the EU acquis.