Skopje, 1 April 2023
A supervisory circular will strengthen the protection of consumers of banking services
At its regular meeting, the National Bank Council adopted a Circular for financial institutions for monitoring and implementation of the recommendations and good practices for protection of the rights and interests of consumers when using financial services from the banking sector of the Republic of North Macedonia. Namely, the National Bank, through the adopted Circular, establishes good practices regarding the protection of consumers - beneficiaries, making efforts for fair and transparent relations, based on clear and easily understandable information on the products and services they provide. The preparation of this Circular uses international standards, European directives and practices in this area, taking into account the characteristics of the banking system and the banking regulations in our country.
The Circular envisages provisions for further raising the corporate culture and values in the banks that focus on fair and equal treatment towards clients. Also, the Circular envisages provisions for the establishment of practices for providing appropriate advices and recommendations for consumers, based on the financial goals, needs and knowledge of each consumer, taking into account the complexity of the financial service or product and the risks associated with them. The availability to clear, relevant and timely information on financial services and products is also an important aspect of the consumer protection, so the Circular also defines the practices in this area. Important provisions in the Circular are also devoted to setting good practices related to the handling of complaints from clients, expecting that financial institutions will improve the efficient handling system, as well as that they will act on consumers’ complaints in a timely and fair manner.
The practices covered in the Circular aim to encourage the establishment of high standards of responsible and professional behavior in financial institutions towards clients and building of a culture where the interests of consumers are an integral part of the business strategies and operations of financial institutions.
At the same meeting, the Council confirmed the rate of the countercyclical capital buffer for the exposures of the banks to clients from the country in the amount of 0.75%, which will apply also in the second quarter of 2024. The decision is based on the regular quarterly systemic risk assessment for the fourth quarter of 2022, which confirmed that the banking sector is sound and stable and resistant to shocks. At the same time, the estimates for a gradual increase in the cyclical systemic risks have also been maintained, in conditions of prolonged uncertainty, including on the real estate market. In such conditions, when the risks have not yet been reflected on the domestic banks' balance sheets, the countercyclical capital buffer contributes to strengthening of the capital strength of domestic banks, which also strengthens the stability and resilience of the banking system, and thus the overall financial stability.
At the session the Council also adopted the Operational Risk Management Report of the National Bank of the Republic of North Macedonia for 2022. The main purpose of this Report is to present the results of the in-depth assessment of the operational risks for 2022. The risk management is a necessary element of the good corporate governance which contributes to the efficient realization of the set strategic objectives, mandate and vision.