Skopje, 21 November 2024

Notwithstanding numerous crises, the stability of the financial system was preserved, while the risk remained moderate. Last year, the financial institutions operated in more favorable macro environment and registered solid results and improved financial intermediation. However, there are still risks and uncertainty mainly related to the external environment and the impact of geopolitical turmoil and geo-economic fragmentation. These are some of the conclusions drawn at today’s session of the Financial Stability Committee, which was held in the National Bank.

The session was chaired by the Governor of the National Bank, Anita Angelovska Bezhoska and it was attended by the Minister of Finance, Gordana Dimitrieska-Kochoska, the Chairwoman of the Securities and Exchange Commission (SEC), Nora Aliti, the Chairman of the Board of Experts of the Agency for Supervision of Fully Funded Pension Insurance (MAPAS), Maksud Ali and the President of the Council of Experts of the Insurance Supervision Agency (ISA), Krste Shajnoski. At the meeting, the Financial Stability Report in 2023 was discussed, emphasizing that the capacity of the household and corporate balances is solid, ensuring resilience to shocks and tight financing conditions.  However, having in mind the increased indebtedness, the financial institutions should remain cautious in conducting macro prudential policy, as a support to financial stability maintenance in the following period.

Speaking about the banking sector, Angelovska Bezhoska stressed that last year, the capital adequacy continued to improve, which is a prerequisite for higher credit growth, as well as for a greater resilience of the banking sector to crises. This is a result of both the careful behavior of the banks and the regulatory measures in conditions of positive financial operating results. This also contributed to get closer to the capital adequacy ratio in the EU, which is higher than ours. The quality of the banking system's credit portfolio has remained at the level that is better than the one before the crisis. As a result of the good balance sheet position of the banking system, credit growth accelerated further due to company and household support. However, given the present risks, it is necessary to carefully monitor the situation and further build the resilience of the banking system.

"The Financial Stability Committee now including also members from the Ministry of Finance, will continue to play a significant role in maintaining financial stability in the country. The Financial Stability Committee will act in accordance with the legal provisions and will determine and monitor systemic risks in individual segments of the financial system in order the competent authorities to take macro prudential measures to maintain the financial stability in the country, which has been proven in the presented report," said the Minister of Finance.

“Remaining consistent in the implementation of public powers, the Securities and Exchange Commission continues to supervise and regulate the capital market, monitor and prevent potential market risks, and ensure the stability of the capital market. Recognizing that financial institutions do not operate in an institutional vacuum and taking into account the growing risks arising from the increased dependence of financial institutions on digital technologies, in future we should focus more on the importance of digital resilience for critical market infrastructure as a basis for the stability of the capital market and the financial system as a whole,” said Securities and Exchange Commission (SEC) Chairwoman, Nora Aliti. 

The President of the Council of Experts of MAPAS, Maksud Ali, emphasized that MAPAS provides constant functioning, development and promotion of the second and the third pillar, transparency and efficient supervision of the second largest segment in the financial sector in the country. MAPAS carefully monitors the situation in the fully funded pension insurance and the potential risks in both the second and the third pillar, in general, and of course with special emphasis on the global situation and the reaction of pension companies with respect to their investment strategies and tactics in order to generate the highest yield, only in favor of the pension fund members. He also emphasized that the Agency, as a regulator and supervisor, is dedicated towards pension system and financial literacy promotion and inclusion, towards development of public awareness and cooperates with institutions involved in pension insurance and relevant institutions in the field of finance to achieve its mission - protection of the interests of pension fund members and encouraging the development of fully funded pension insurance for more secure retirement days. 

The President of the Council of Experts of the Insurance Supervision Agency (ASO), Krste Shajnoski, said that the insurance market in the first nine months of this year has recorded intensive growth in investments in insurance and a moderate increase in paid claims covered by insurance. The total amount of investments in insurance products exceeds Denar 12 billion. For the same period, citizens, companies and institutions have collected over Denar 4 billion from insurance companies for insured claims.

All insurance companies fully meet the legally prescribed requirements and have sufficient funds to cover technical or mathematical reserves.

At the meeting, it was emphasized that the financial regulators will continue with further coordinated monitoring of the situation and timely exchange of all relevant information, as well as their readiness to respond adequately to the developments, each within the their competence. Аll financial system regulators have enough instruments they can use if necessary, which guarantees that the financial stability will be preserved in the following period.