Skopje, 27 February 2023

At the meeting held on 27 February 2023, the National Bank Council adopted a new Decision on the methodology for credit risk management, aimed at further alignment with the new regulatory requirements introduced in the European Union, thus contributing to further strengthening of the banking system stability. The Decision prescribes a new method of determining non-performing[1]  credit exposures and strengthens the criteria for monitoring and controlling the quality of the banks' credit portfolio. Also, the rules for restructuring the banks' credit exposures to customers facing financial difficulties are being improved.  

For the purpose of greater transparency in the bank operations and monitoring their compliance by the National Bank, the Decision on the methodology for credit risk management expands the information and the data that the banks ought to submit to the National Bank, for which they should expand the scope of the reporting system to the central bank. Thus, the innovations in this domain, among other things, envisage more detailed information on restructured[2] credit exposures, monitoring of the banks' activities towards reduction of the non-performing credit exposures, as well as on approved green loans.

The implementation of this Decision enables a more detailed monitoring of the movements in the banks' credit portfolio and a timely assessment of potential risks for the financial stability.

Taking into account the novelties that this Decision introduces, the National Bank envisages its implementation to commence from 1 January 2024, thus ensuring sufficient time for appropriate changes in the banks' systems and for adapting the bank operations to these new requirements. At the same time, the novelties related to the climate change risks will apply from 1 January 2025.

The Rules for Operation of the Macedonian Interbank Payment System (MIPS) were also adopted at this meeting. These rules are part of the bylaws adopted by the National Bank in order to comply with the requirements of the new Law on Payment Services and Payment Systems that entered into force at the beginning of this year. The new law is a significant step forward in the harmonization of payment services with the European regulation, expecting that it will produce numerous advantages for both the corporate and the household sector. 

So far, the National Bank has adopted 29 bylaws. Hence, the Rules expand the scope of MIPS participants with new entities that, in accordance with the Law, can provide payment services and participate in payment systems, regulating also other issues related to the execution of orders for the transfer of funds and risk management.